Things Look Grim For Hyloris Pharmaceuticals SA (EBR:HYL) After Today's Downgrade
The analysts covering Hyloris Pharmaceuticals SA (EBR:HYL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as the analysts factored in the latest outlook for the business, concluding that they were too optimistic previously. Shares are up 6.0% to €4.45 in the past week. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.
Following the downgrade, the most recent consensus for Hyloris Pharmaceuticals from its dual analysts is for revenues of €12m in 2026 which, if met, would be a substantial 24% increase on its sales over the past 12 months. The loss per share is expected to ameliorate slightly, reducing to €0.16. Yet before this consensus update, the analysts had been forecasting revenues of €22m and losses of €0.12 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.
Check out our latest analysis for Hyloris Pharmaceuticals
The consensus price target fell 8.7% to €11.23, implicitly signalling that lower earnings per share are a leading indicator for Hyloris Pharmaceuticals' valuation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Hyloris Pharmaceuticals' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 33% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% annually. Even after the forecast slowdown in growth, it seems obvious that Hyloris Pharmaceuticals is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Hyloris Pharmaceuticals.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Hyloris Pharmaceuticals going out as far as 2028, and you can see them free on our platform here.
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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.