What Do Analysts Think About Ablynx NV’s (EBR:ABLX) Long Term Outlook?
Ablynx NV’s (ENXTBR:ABLX) announced its latest earnings update in December 2017, which indicated that losses became smaller relative to the prrior year’s level – great news for investors Today I want to provide a brief commentary on how market analysts predict Ablynx’s earnings growth trajectory over the next few years and whether the future looks brighter. Note that I will be looking at net income excluding extraordinary items to get a better understanding of the underlying drivers of earnings. View our latest analysis for Ablynx
Analysts’ outlook for next year seems buoyant, with earnings becoming less negative, reaching -€15.85M in 2019. However, earnings are expected to fall off in the following year, before bouncing back up again to -€20.78M in 2021.
Although it is helpful to understand the growth each year relative to today’s level, it may be more beneficial estimating the rate at which the business is growing on average every year. The benefit of this method is that we can get a better picture of the direction of Ablynx’s earnings trajectory over the long run, irrespective of near term fluctuations, fluctuate up and down. To calculate this rate, I put a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 60.55%. This means, we can anticipate Ablynx will grow its earnings by 60.55% every year for the next couple of years.
Next Steps:
For Ablynx, there are three important factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is ABLX worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABLX is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of ABLX? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
