EcoUp Oyj (HEL:ECOUP) Just Reported And Analysts Have Been Lifting Their Price Targets

EcoUp Oyj (HEL:ECOUP) defied analyst predictions to release its half-year results, which were ahead of market expectations. Revenues of €12m were better than expected, some 13% ahead of forecasts. The company still lost a statutory €0.19 per share, although the losses were 14% smaller than the analyst expected. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for EcoUp Oyj

Following last week's earnings report, EcoUp Oyj's solitary analyst are forecasting 2024 revenues to be €28.9m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analyst had been forecasting revenues of €28.1m and losses of €0.26 per share in 2024. The thing that stands out most is that, while there's been a small lift in revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

The average price target rose 11% to €2.00, with the analyst clearly having become more optimistic about EcoUp Oyj'sprospects following these results.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2024 compared to the historical decline of 17% per annum over the past year. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.1% annually. So while a broad number of companies are forecast to grow, unfortunately EcoUp Oyj is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analyst upgraded their revenue estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

One EcoUp Oyj broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for EcoUp Oyj (1 can't be ignored!) that you need to be mindful of.

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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.