LEM Holding SA (VTX:LEHN) Analysts Just Slashed This Year's Estimates

The latest analyst coverage could presage a bad day for LEM Holding SA (VTX:LEHN), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the consensus from four analysts covering LEM Holding is for revenues of CHF303m in 2025, implying a not inconsiderable 11% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to nosedive 45% to CHF14.71 in the same period. Previously, the analysts had been modelling revenues of CHF350m and earnings per share (EPS) of CHF34.77 in 2025. Indeed, we can see that the analysts are a lot more bearish about LEM Holding's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for LEM Holding

It'll come as no surprise then, to learn that the analysts have cut their price target 10% to CHF1,447.

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 a forecast 20% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 6.9% 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 LEM Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with LEM Holding's financials, such as its declining profit margins. For more information, you can click here to discover this and the 3 other warning signs we've identified.

We also provide an overview of the LEM Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.