Titanium Oyj's (HEL:TITAN) Analyst Just Slashed This Year's Estimates

Market forces rained on the parade of Titanium Oyj (HEL:TITAN) shareholders today, when the covering analyst downgraded their 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 this downgrade, Titanium Oyj's lone analyst are forecasting 2023 revenues to be €28m, approximately in line with the last 12 months. Statutory earnings per share are forecast to be €1.06, approximately in line with the last 12 months. Prior to this update, the analyst had been forecasting revenues of €31m and earnings per share (EPS) of €1.32 in 2023. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a considerable drop in earnings per share numbers as well.

View our latest analysis for Titanium Oyj

It'll come as no surprise then, to learn that the analyst has cut their price target 11% to €17.00.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Titanium Oyj's past performance and to peers in the same industry. We would highlight that Titanium Oyj's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2023 being well below the historical 13% 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 8.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Titanium Oyj.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Titanium Oyj. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Titanium Oyj.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Titanium Oyj going out as far as 2025, 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 that insiders are buying.

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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.