PharmaMar will earn 31% less than expected in January. Investment banks have cut their forecasts for the pharmaceutical company, which is trading near its lows for the year.
Things can change a lot from one year to the next on the stock market and PharmaMar has become the perfect example to illustrate this situation.
The Spanish pharmaceutical company, which last 2020 managed to be crowned as one of the values that did the best in the year of the pandemic within the selective Spanish ?? which it joined in September ??, now experiences the opposite case, occupying the eighth place at the bottom of the Ibex 35 in 2021, after already losing 1.52%. It is one of the three most bearish firms in August.
The current situation against Covid-19 in general terms is far from what we had at this point last year, with more than half of the population vaccinated in Spain. However, the drugs with which the Spanish works have not just arrived and that is weighing on the expectations of analysts .
The profit estimates that the consensus of analysts gathered by FactSet offered at the beginning of 2021 for PharmaMar are very far away. At that time, it was expected that its profit would be around 110.05 million euros this year and that it would expand even more in 2022, up to 124.1 million.
But nothing could be further from the truth and it is that, today, more than seven months later, the benefit estimates for the pharmaceutical company have been reduced by more than 31% for this 2021, to 75.48 million euros, and 20% for next year, in this case up to 99.69 million, so it is not expected to return to the estimates that were handled at the beginning of the year until at least 2023.
“We understand that the final approval of Zepzelca in the US will not be obtained until 2022, the possible approval of Aplidin to treat hospitalized patients with Covid-19, if it gives positive results, will not be achieved until 2022 and the expectations for the Covid detection kit -19 worse after Abbot announced a cut in estimates.
We expect that the flow of news this year will be low and that it refers mainly to the generation of expectations for 2022, and we see it prudent to wait for these expectations to develop, “they said from Bankinter, where they maintained their recommendation to maintain after the presentation of results for the third quarter of the year.
For now, keep
Despite this spiral of constant decreases for the pharmaceutical company, the consensus of analysis that Factset gathers continues to give this company a recommendation to maintain.
The action of the pharmaceutical company ended the last day at a price of 69.92 euros, remaining in the area of lows for the year. That annual floor at closing marked it last Friday, at 69.30 euros. From the highs of 2021 that it reached in February, the company is already down 41%.
After this important drop, its target price has also fallen from the 99.6 euros at which the consensus placed its valuation at the beginning of the year, according to Factset data. As of today, this target price is at 97.25 euros, which represents a reduction of 2.4% in the year, somewhat more than it falls. With this, the upside potential for analysts stands at 39%, according to the FactSet average.
A return to the December lows
The last day went from less to more for PharmaMar. The shares of the company came to yield 1%, up to 68.80 euros, which touched the levels of December 2020 and was at the bottom of the Ibex on the day. On the other hand, the shares managed to save the session and fired it with a 0.52% rise, to 69.92 euros. Its annual floor, with closing data, therefore, remains at 69.30 euros last Friday.