Analysts Have Been Trimming Their Prodways Group SA (EPA:PWG) Price Target After Its Latest Report

It's been a mediocre week for Prodways Group SA (EPA:PWG) shareholders, with the stock dropping 14% to €0.71 in the week since its latest yearly results. It was a pretty bad result overall; while revenues were in line with expectations at €76m, statutory losses exploded to €0.27 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Prodways Group

Taking into account the latest results, the most recent consensus for Prodways Group from five analysts is for revenues of €79.3m in 2024. If met, it would imply a satisfactory 5.0% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €77.2m and earnings per share (EPS) of €0.006 in 2024. So it's pretty clear the analysts have mixed opinions on Prodways Group after the latest results; even though they upped their revenue numbers, it came at the cost of a per-share earnings expectations.

Intriguingly,the analysts have cut their price target 6.7% to €1.05 showing a clear decline in sentiment around Prodways Group's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Prodways Group, with the most bullish analyst valuing it at €1.20 and the most bearish at €0.90 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prodways Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Prodways Group'shistorical trends, as the 5.0% annualised revenue growth to the end of 2024 is roughly in line with the 4.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.8% annually. It's clear that while Prodways Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Prodways Group's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Prodways Group analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Prodways Group has 2 warning signs we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.