Need To Know: Analysts Just Made A Substantial Cut To Their BIO-UV Group S.A. (EPA:ALTUV) Estimates

One thing we could say about the analysts on BIO-UV Group S.A. (EPA:ALTUV) - 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 analysts seeing grey clouds on the horizon.

Following the downgrade, the current consensus from BIO-UV Group's dual analysts is for revenues of €52m in 2023 which - if met - would reflect a notable 8.5% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 30% to €0.31. Before this latest update, the analysts had been forecasting revenues of €59m and earnings per share (EPS) of €0.56 in 2023. Indeed, we can see that the analysts are a lot more bearish about BIO-UV Group's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for BIO-UV Group

The consensus price target fell 10% to €5.75, with the weaker earnings outlook clearly leading analyst valuation estimates. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on BIO-UV Group, with the most bullish analyst valuing it at €6.20 and the most bearish at €5.30 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that BIO-UV Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 30% over the past three years. Compare this to the 27 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.5% per year. Factoring in the forecast slowdown in growth, it looks like BIO-UV Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. There was also a drop in their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

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 2025, 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 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.