News Flash: One Nurminen Logistics Oyj (HEL:NLG1V) Analyst Has Been Trimming Their Revenue Forecasts

The latest analyst coverage could presage a bad day for Nurminen Logistics Oyj (HEL:NLG1V), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from solo analyst covering Nurminen Logistics Oyj is for revenues of €116m in 2024, implying an uneasy 10% decline in sales compared to the last 12 months. Statutory earnings per share are supposed to plunge 26% to €0.12 in the same period. Previously, the analyst had been modelling revenues of €148m and earnings per share (EPS) of €0.13 in 2024. It looks like analyst sentiment has fallen somewhat in this update, with a sizeable cut to revenue estimates and a minor downgrade to earnings per share numbers as well.

See our latest analysis for Nurminen Logistics Oyj

It'll come as no surprise then, to learn that the analyst has cut their price target 25% to €1.05.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nurminen Logistics Oyj's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 13% 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 3.0% per year. It's pretty clear that Nurminen Logistics Oyj's revenues are expected to perform substantially worse than 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 Nurminen Logistics Oyj. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Nurminen Logistics Oyj's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Nurminen Logistics Oyj's future valuation. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Nurminen Logistics Oyj going forwards.

Unfortunately, by using these new estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Nurminen Logistics Oyj that suggests the company could be somewhat overvalued. Learn why, and examine the assumptions that underpin our valuation by visiting our free platform here to learn more about our valuation approach.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.

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