One SSH Communications Security Oyj (HEL:SSH1V) Analyst Just Slashed Their Estimates By A Material 20%

One thing we could say about the covering analyst on SSH Communications Security Oyj (HEL:SSH1V) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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Following the downgrade, the current consensus from SSH Communications Security Oyj's solitary analyst is for revenues of €26m in 2026 which - if met - would reflect a solid 11% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 91% to €0.01. Previously, the analyst had been modelling revenues of €32m and earnings per share (EPS) of €0.02 in 2026. There looks to have been a major change in sentiment regarding SSH Communications Security Oyj's prospects, with a sizeable cut to revenues and the analyst now forecasting a loss instead of a profit.

View our latest analysis for SSH Communications Security Oyj

The analyst lifted their price target 55% to €3.10, implicitly signalling that lower earnings per share are not expected to have a longer-term impact on the stock's value.

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. It's pretty clear that there is an expectation that SSH Communications Security Oyj's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it seems obvious that SSH Communications Security Oyj is also expected to grow slower than other industry participants.

The Bottom Line

The biggest low-light for us was that the forecasts for SSH Communications Security Oyj dropped from profits to a loss next year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The increasing price target is not intuitively what we would expect to see, given these downgrades, and we'd suggest shareholders revisit their investment thesis before making a decision.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, which can be seen for 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 with high insider ownership.

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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.