Yahoo Finance Analysts' Revenue Estimates For E.ON SE (ETR:EOAN) Are Surging Higher
E.ON SE (ETR:EOAN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the latest upgrade, the current consensus, from the 17 analysts covering E.ON, is for revenues of €99b in 2023, which would reflect a definite 15% reduction in E.ON's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €95b in 2023. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the modest lift to this year's revenue forecasts.
Check out our latest analysis for E.ON
There was no particular change to the consensus price target of €11.18, with E.ON's latest outlook seemingly not enough to result in a change of valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values E.ON at €13.50 per share, while the most bearish prices it at €6.60. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the E.ON's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 15% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 28% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.3% per year. So it's pretty clear that E.ON's revenues are expected to shrink faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to shrink faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at E.ON.
Want to learn more? At least one of E.ON's 17 analysts has provided estimates out to 2025, which can be seen for free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.
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