Earnings Release: Here's Why Analysts Cut Their GreenMobility A/S (CPH:GREENM) Price Target To kr.145

GreenMobility A/S (CPH:GREENM) shareholders are probably feeling a little disappointed, since its shares fell 6.7% to kr.74.80 in the week after its latest half-yearly results. Despite revenues of kr.23m falling 2.9% short of expectations, statutory losses of kr.7.89 per share were well contained, and in line with analyst models. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for GreenMobility

Taking into account the latest results, the most recent consensus for GreenMobility from sole analyst is for revenues of kr.103.4m in 2022 which, if met, would be a sizeable 31% increase on its sales over the past 12 months. Losses are expected to increase slightly, to kr.13.57 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr.104.1m and losses of kr.14.17 per share in 2022. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

Even with the lower forecast losses, the analyst lowered their valuations, with the average price target falling 9.4% to kr.145. It looks likethe analyst has become less optimistic about the overall business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that GreenMobility's rate of growth is expected to accelerate meaningfully, with the forecast 72% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 33% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that GreenMobility is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of GreenMobility's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You still need to take note of risks, for example - GreenMobility has 5 warning signs (and 2 which are significant) we think you should know about.

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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.