Some Analysts Just Cut Their Toivo Group Oyj (HEL:TOIVO) Estimates

The analysts covering Toivo Group Oyj (HEL:TOIVO) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for next year. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well. At €0.93, shares are up 7.1% in the past 7 days. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

Following the downgrade, the consensus from twin analysts covering Toivo Group Oyj is for revenues of €38m in 2024, implying a perceptible 7.3% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €44m in 2024. The consensus view seems to have become more pessimistic on Toivo Group Oyj, noting the measurable cut to revenue estimates in this update.

See our latest analysis for Toivo Group Oyj

There was no particular change to the consensus price target of €1.25, with Toivo Group Oyj's latest outlook seemingly not enough to result in a change of valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Toivo Group Oyj's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.9% by the end of 2024. This indicates a significant reduction from annual growth of 64% over the last three years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.5% per year. The forecasts do look bearish for Toivo Group Oyj, since they're expecting it to shrink faster than the industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Toivo Group Oyj next year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Toivo Group Oyj going forwards.

That said, the analysts might have good reason to be negative on Toivo Group Oyj, given its declining profit margins. For more information, you can click here to discover this and the 2 other concerns 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.