Have analysts changed their opinion on the stock?

Investors in AFT Pharmaceuticals Limited (NZSE:AFT) had a good week as its shares rose 2.1% to close at NZ$2.91 after reporting its full-year results. AFT Pharmaceuticals reported revenues of NZ$195m, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of NZ$0.15 were better than expected, being 3.4% ahead of analyst expectations. This is an important time for investors because they can track the company’s performance in its report, read expert forecasts for next year and see if there have been any changes in expectations for the company. With this in mind, we’ve gathered the latest statutory forecasts to see what analysts expect for next year.

View our latest analysis for AFT Pharmaceuticals

Taking into account the latest results, the latest consensus from three analysts is for AFT Pharmaceuticals to have revenues of NZ$223.6m in 2025. If met, this would represent a significant revenue increase of 14% over the last 12 months. Statutory earnings per share are forecast to increase by 7.7% to NZ$0.16. Prior to the earnings report, analysts had been forecasting revenues of NZ$220.2m and earnings per share (EPS) of NZ$0.17 in 2025. So it appears there has been a slight dip in overall sentiment following the latest results – there has been no major changes to revenue estimates, but analysts slightly lowered their earnings per share forecasts.

The consensus price target was held steady at NZ$3.75, with analysts apparently voting that lower forecast earnings would not result in a lower share price in the foreseeable future. The consensus price target is simply an average of each analyst’s target values, so it may be useful to see how wide the range of estimates underlying it is. There are mixed views on AFT Pharmaceuticals, with the most bullish analyst valuing the company at NZ$4.60 and the most bearish at NZ$2.90 per share. These price targets show that analysts do indeed have different views on the business, but the estimates don’t vary enough to suggest some are betting on wild success or outright failure.

Estimates can also be viewed in the context of the bigger picture, such as how forecasts compare to past performance and whether forecasts are more or less optimistic compared to other companies in the industry. Analysts say the period to the end of 2025 will see more of the same, with revenue forecast to be 14% year-over-year. This corresponds to 15% annual growth over the last five years. Compare this to the broader industry (collectively), which analysts estimate will see revenue growth of 44% annually. So while AFT Pharmaceuticals is expected to maintain its revenue growth rate, it is expected to grow at a slower pace than the broader industry.

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Conclusion

The biggest concern is that analysts have lowered earnings per share estimates, suggesting that AFT Pharmaceuticals may face business difficulties. Fortunately, analysts also reaffirmed their revenue estimates, suggesting they are in line with expectations. Although our data suggests AFT Pharmaceuticals’ earnings will be worse than the broader industry. The consensus price target has held steady at NZ$3.75, with the latest estimates not sufficiently strong to influence price targets.

As such, the company’s long-term earnings trajectory is much more important than next year. We have estimates – from multiple AFT Pharmaceuticals analysts – covering the year 2027. You can see them for free on our platform here.

You can check whether AFT Pharmaceuticals has too much debt and whether its balance sheet is healthy on our platform.

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This article by Simply Wall St is of a general nature. We comment based on historical data and analyst forecasts, using only an unbiased methodology, and our articles are not intended to provide financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned.