This lastminute.com N.V. (VTX:LMN) Analyst Is Way More Bearish Than They Used To Be

One thing we could say about the covering analyst on lastminute.com N.V. (VTX:LMN) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the latest downgrade, lastminute.com's solo analyst currently expects revenues in 2024 to be €318m, approximately in line with the last 12 months. Statutory earnings per share are expected to be €0.64, roughly flat on the last 12 months. Previously, the analyst had been modelling revenues of €353m and earnings per share (EPS) of €1.15 in 2024. Indeed, we can see that the analyst is a lot more bearish about lastminute.com's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for lastminute.com

It'll come as no surprise then, to learn that the analyst has cut their price target 15% to €26.78.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the lastminute.com's past performance and to peers in the same industry. From these estimates it looks as though the analyst expects the years of declining sales to come to an end, given the flat revenue forecast out to 2024. That would be a definite improvement, given that the past five years have seen sales shrink 0.2% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.7% per year. So it's pretty clear that, although revenues are improving, lastminute.com is still expected to grow slower than the 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 lastminute.com. 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 lastminute.com.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with lastminute.com's business, like the risk of cutting its dividend. Learn more, and discover the 1 other flag we've identified, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com