What You Need To Know About The IONOS Group SE (ETR:IOS) Analyst Downgrade Today

The analysts covering IONOS Group SE (ETR:IOS) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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After this downgrade, IONOS Group's nine analysts are now forecasting revenues of €1.7b in 2026. This would be an okay 2.7% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 28% to €2.06. Previously, the analysts had been modelling revenues of €1.9b and earnings per share (EPS) of €2.04 in 2026. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a substantial drop in revenues and some minor tweaks to earnings numbers.

Check out our latest analysis for IONOS Group

It will come as no surprise then, that the consensus price target fell 5.7% to €39.30 following these changes.

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. It's pretty clear that there is an expectation that IONOS Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that IONOS Group is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that IONOS Group's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of IONOS Group's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on IONOS Group after today.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on IONOS Group's mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about IONOS Group's balance sheet by visiting our risks dashboard for free on our platform here.

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

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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.