Yahoo Finance Some Analysts Just Cut Their CureVac N.V. (NASDAQ:CVAC) Estimates
Market forces rained on the parade of CureVac N.V. (NASDAQ:CVAC) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Surprisingly the share price has been buoyant, rising 20% to US$2.77 in the past 7 days. It will be interesting to see if the downgrade has an impact on buying demand for the company's shares.
Following the downgrade, the most recent consensus for CureVac from its six analysts is for revenues of €65m in 2024 which, if met, would be a substantial 20% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €84m in 2024. It looks like forecasts have become a fair bit less optimistic on CureVac, given the pretty serious reduction to revenue estimates.
See our latest analysis for CureVac
The consensus price target fell 20% to €9.19, with the analysts clearly less optimistic about CureVac's valuation following this update. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values CureVac at €16.84 per share, while the most bearish prices it at €2.43. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how think this business will perform. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while CureVac's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for CureVac this year. They're also forecasting for revenues to grow at about the same rate as companies in the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of CureVac's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of CureVac going forwards.
Unanswered questions? We have estimates for CureVac from its six analysts out until 2026, 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.
