What Does The Future Hold For Grenergy Renovables, S.A. (BME:GRE)? These Analysts Have Been Cutting Their Estimates

One thing we could say about the analysts on Grenergy Renovables, S.A. (BME:GRE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for Grenergy Renovables from its nine analysts is for revenues of €673m in 2025 which, if met, would be a major 106% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €772m of revenue in 2025. The consensus view seems to have become more pessimistic on Grenergy Renovables, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Grenergy Renovables

There was no particular change to the consensus price target of €48.66, with Grenergy Renovables' latest outlook seemingly not enough to result in a change of valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Grenergy Renovables' rate of growth is expected to accelerate meaningfully, with the forecast 78% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 33% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grenergy Renovables to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Grenergy Renovables next year. They're also forecasting more rapid revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Grenergy Renovables after today.

Looking to learn more? We have estimates for Grenergy Renovables from its nine analysts out until 2027, 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 with high insider ownership.

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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.