Market forces rained on the parade of Akoya Biosciences, Inc. (NASDAQ:AKYA) shareholders today, when the analysts downgraded their forecasts for next year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Akoya Biosciences' seven analysts are now forecasting revenues of US$99m in 2025. This would be a notable 14% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$116m in 2025. The consensus view seems to have become more pessimistic on Akoya Biosciences, noting the substantial drop in revenue estimates in this update.

See our latest analysis for Akoya Biosciences

The consensus price target fell 19% to US$3.88, with the analysts clearly less optimistic about Akoya Biosciences' valuation following this update.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Akoya Biosciences' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 20% 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 6.4% annually. So it's pretty clear that, while Akoya Biosciences' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Akoya Biosciences' future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Akoya Biosciences after today.

Thirsting for more data? At least one of Akoya Biosciences' seven analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.