One Analyst Just Shaved Their Titanium Oyj (HEL:TITAN) Forecasts Dramatically

The analyst covering Titanium Oyj (HEL:TITAN) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Titanium Oyj's lone analyst is for revenues of €27m in 2024, which would reflect a credible 3.5% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to increase 7.2% to €1.01. Prior to this update, the analyst had been forecasting revenues of €31m and earnings per share (EPS) of €1.32 in 2024. Indeed, we can see that the analyst is a lot more bearish about Titanium Oyj's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Titanium Oyj

The consensus price target fell 12% to €15.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Titanium Oyj's revenue growth is expected to slow, with the forecast 3.5% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Titanium Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Titanium Oyj's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

After a downgrade like this one, it's pretty clear that previous forecasts were too optimistic. Worse, it's possible that the forecast future income could struggle to cover Titanium Oyj'sdividend payments. For more information, you can click here to learn more about our dividend analysis and the 1 potential concern we've identified.

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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.