One Korado-Bulgaria AD (BUL:4KX) Analyst Just Slashed Their 2020 Revenue Estimates

The latest analyst coverage could presage a bad day for Korado-Bulgaria AD (BUL:4KX), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the consensus from single analyst covering Korado-Bulgaria AD is for revenues of лв40m in 2020, implying a measurable 5.1% decline in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of лв45m in 2020. It looks like forecasts have become a fair bit less optimistic on Korado-Bulgaria AD, given the substantial drop in revenue estimates.

Check out our latest analysis for Korado-Bulgaria AD

Notably, the analyst has cut their price target 17% to лв5.80, suggesting concerns around Korado-Bulgaria AD's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with the forecast 5.1% revenue decline a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.3% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Korado-Bulgaria AD is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Korado-Bulgaria AD's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Korado-Bulgaria AD after today.

Of course, this isn't the full story. We have forecasts for Korado-Bulgaria AD from one covering analyst, and you can see them free on our platform here.

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