Allgeier SE (ETR:AEIN) Analysts Are More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for Allgeier SE (ETR:AEIN), 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 analysts seeing grey clouds on the horizon.

Following the latest downgrade, the current consensus, from the three analysts covering Allgeier, is for revenues of €653m in 2020, which would reflect a not inconsiderable 14% reduction in Allgeier's sales over the past 12 months. Statutory earnings per share are supposed to crater 22% to €1.36 in the same period. Prior to this update, the analysts had been forecasting revenues of €803m and earnings per share (EPS) of €1.94 in 2020. Indeed, we can see that the analysts are a lot more bearish about Allgeier's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Allgeier

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 26% by the end of 2020. This indicates a significant reduction from annual growth of 11% 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 8.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Allgeier is expected to lag 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 Allgeier. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. We wouldn't be surprised to find shareholders feeling a bit shell-shocked, after these downgrades. It looks like analysts have become a lot more bearish on Allgeier, and their negativity could be grounds for caution.

There might be good reason for analyst bearishness towards Allgeier, like dilutive stock issuance over the past year. For more information, you can click here to discover this and the 5 other flags we've identified.

You can also see our analysis of Allgeier's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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