Downgrade: Here's How This Analyst Sees Wulff-Yhtiöt Oyj (HEL:WUF1V) Performing In The Near Term

The latest analyst coverage could presage a bad day for Wulff-Yhtiöt Oyj (HEL:WUF1V), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) estimates were cut sharply as the analyst factored in the latest outlook for the business, concluding that they were too optimistic previously.

After the downgrade, the consensus from Wulff-Yhtiöt Oyj's single analyst is for revenues of €92m in 2024, which would reflect a noticeable 7.1% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to plunge 37% to €0.22 in the same period. Before this latest update, the analyst had been forecasting revenues of €105m and earnings per share (EPS) of €0.45 in 2024. Indeed, we can see that the analyst is a lot more bearish about Wulff-Yhtiöt Oyj's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for Wulff-Yhtiöt Oyj

It'll come as no surprise then, to learn that the analyst has cut their price target 53% to €2.00.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 5.7% by the end of 2024. This indicates a significant reduction from annual growth of 16% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Wulff-Yhtiöt Oyj is expected to lag the wider industry.

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 Wulff-Yhtiöt Oyj. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Wulff-Yhtiöt Oyj's revenues are expected to grow slower than the wider market. With a serious cut to next year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Wulff-Yhtiöt Oyj.

That said, the covering analyst might have good reason to be negative on Wulff-Yhtiöt Oyj, given a weak balance sheet. Learn more, and discover the 3 other flags we've identified, for free on our platform here.

You can also see our analysis of Wulff-Yhtiöt Oyj's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.