Analysts Just Slashed Their Instone Real Estate Group SE (ETR:INS) EPS Numbers

The latest analyst coverage could presage a bad day for Instone Real Estate Group SE (ETR:INS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from Instone Real Estate Group's four analysts is for revenues of €643m in 2024 which - if met - would reflect a solid 20% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to tumble 33% to €0.63 in the same period. Prior to this update, the analysts had been forecasting revenues of €776m and earnings per share (EPS) of €0.88 in 2024. It looks like analyst sentiment has declined substantially, with a substantial drop in revenue estimates and a pretty serious decline to earnings per share numbers as well.

See our latest analysis for Instone Real Estate Group

Analysts made no major changes to their price target of €8.88, suggesting the downgrades are not expected to have a long-term impact on Instone Real Estate Group's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Instone Real Estate Group's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 13% per year. So it's clear with the acceleration in growth, Instone Real Estate Group is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Instone Real Estate Group. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. We're also surprised to see that the price target went unchanged. Still, deteriorating business conditions (assuming accurate forecasts!) can be a leading indicator for the stock price, so we wouldn't blame investors for being more cautious on Instone Real Estate Group after the downgrade.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Instone Real Estate Group analysts - going out to 2025, 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 that insiders are buying.

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