Analysts' Revenue Estimates For Tikehau Capital (EPA:TKO) Are Surging Higher

Tikehau Capital (EPA:TKO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the six analysts covering Tikehau Capital are now predicting revenues of €113m in 2020. If met, this would reflect a substantial 74% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching €1.64 per share. However, before this estimates update, the consensus had been expecting revenues of €89m and €1.69 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for Tikehau Capital

Despite these upgrades, the analysts have not made any major changes to their price target of €27.04, implying that their latest estimates don't have a long term impact on what they think the stock is worth. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Tikehau Capital analyst has a price target of €31.30 per share, while the most pessimistic values it at €23.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tikehau Capital's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Tikehau Capital is forecast to grow faster in the future than it has in the past, with revenues expected to grow 74%. If achieved, this would be a much better result than the 6.8% annual decline over the past three years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 6.7% next year. Not only are Tikehau Capital's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Tikehau Capital is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Tikehau Capital.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Tikehau Capital analysts - going out to 2023, and you can see them free 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 that insiders are buying.

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