Yahoo Finance Downgrade: Here's How This Analyst Sees FORTEC Elektronik AG (ETR:FEV) Performing In The Near Term
The latest analyst coverage could presage a bad day for FORTEC Elektronik AG (ETR:FEV), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.
After the downgrade, the consensus from FORTEC Elektronik's one analyst is for revenues of €93m in 2024, which would reflect a not inconsiderable 10% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to tumble 27% to €1.66 in the same period. Previously, the analyst had been modelling revenues of €106m and earnings per share (EPS) of €2.10 in 2024. Indeed, we can see that the analyst is a lot more bearish about FORTEC Elektronik's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.
View our latest analysis for FORTEC Elektronik
It'll come as no surprise then, to learn that the analyst has cut their price target 6.1% to €31.00.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the FORTEC Elektronik's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 10% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 4.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. It's pretty clear that FORTEC Elektronik's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for FORTEC Elektronik. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of FORTEC Elektronik.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for FORTEC Elektronik going out as far as 2026, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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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.
