Bearish: This Analyst Is Revising Their PowerCell Sweden AB (publ) (STO:PCELL) Revenue and EPS Prognostications
Market forces rained on the parade of PowerCell Sweden AB (publ) (STO:PCELL) shareholders today, when the covering analyst downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.
Following the latest downgrade, the current consensus, from the solitary analyst covering PowerCell Sweden, is for revenues of kr288m in 2026, which would reflect a chunky 20% reduction in PowerCell Sweden's sales over the past 12 months. Losses are supposed to balloon 93% to kr1.79 per share. Yet before this consensus update, the analyst had been forecasting revenues of kr344m and losses of kr0.98 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.
See our latest analysis for PowerCell Sweden
The consensus price target fell 11% to kr28.50, implicitly signalling that lower earnings per share are a leading indicator for PowerCell Sweden's valuation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 35% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 23% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 9.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PowerCell Sweden is expected to lag the wider industry.
The Bottom Line
The most important thing to take away is that the analyst increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of PowerCell Sweden.
As you can see, this analyst clearly isn't bullish, and there might be good reason for that. We've identified some potential issues with PowerCell Sweden's financials, such as a short cash runway. For more information, you can click here to discover this and the 2 other flags we've identified.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.