Damartex (EPA:ALDAR) Just Reported, And Analysts Assigned A €7.00 Price Target

Shareholders might have noticed that Damartex (EPA:ALDAR) filed its annual result this time last week. The early response was not positive, with shares down 8.1% to €6.10 in the past week. It was an okay report, and revenues came in at €650m, approximately in line with analyst estimates leading up to the results announcement. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

View our latest analysis for Damartex

Taking into account the latest results, the single analyst covering Damartex provided consensus estimates of €600.0m revenue in 2024, which would reflect a discernible 7.7% decline over the past 12 months. Before this latest report, the consensus had been expecting revenues of €655.0m and €1.55 per share in losses. So we can see that while the consensus made a small dip in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

Intriguingly,the analyst has cut their price target 18% to €7.00 showing a clear decline in sentiment around Damartex's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 1.2% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 7.7% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 7.8% annually. So while a broad number of companies are forecast to grow, unfortunately Damartex is expected to see its revenue affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. Still, earnings per share are more important to value creation for shareholders. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Damartex's future valuation.

We have estimates for Damartex from one covering analyst, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Damartex that we have uncovered.

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.