Need To Know: The Consensus Just Cut Its Eurazeo SE (EPA:RF) Estimates For 2024

Today is shaping up negative for Eurazeo SE (EPA:RF) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the current consensus from Eurazeo's three analysts is for revenues of €880m in 2024 which - if met - would reflect a substantial 161% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €1.1b of revenue in 2024. It looks like forecasts have become a fair bit less optimistic on Eurazeo, given the measurable cut to revenue estimates.

View our latest analysis for Eurazeo

We'd point out that there was no major changes to their price target of €94.00, suggesting the latest estimates were not enough to shift their view on the value of the business.

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. One thing stands out from these estimates, which is that Eurazeo is forecast to grow faster in the future than it has in the past, with revenues expected to display 6x annualised growth until the end of 2024. If achieved, this would be a much better result than the 17% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 19% annually. So it looks like Eurazeo is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Eurazeo after today.

Not only have the analysts been downgrading the stock, but it looks like Eurazeo might find it hard to maintain its dividends, if these forecasts prove accurate. What makes us say that? Learn more by visiting our risks dashboard on our platform here.

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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