Need To Know: The Consensus Just Cut Its Tikehau Capital (EPA:TKO) Estimates For 2024

One thing we could say about the analysts on Tikehau Capital (EPA:TKO) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from Tikehau Capital's six analysts is for revenues of €590m in 2024 which - if met - would reflect a solid 19% increase on its sales over the past 12 months. Per-share earnings are expected to soar 51% to €1.42. Prior to this update, the analysts had been forecasting revenues of €657m and earnings per share (EPS) of €1.56 in 2024. Indeed, we can see that analyst sentiment has declined measurably after the new consensus came out, with a substantial drop in revenue estimates and a minor downgrade to EPS estimates to boot.

See our latest analysis for Tikehau Capital

Analysts made no major changes to their price target of €26.91, suggesting the downgrades are not expected to have a long-term impact on Tikehau Capital's valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Tikehau Capital's rate of growth is expected to accelerate meaningfully, with the forecast 42% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 12% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 3.7% per year. It seems obvious that as part of the brighter growth outlook, Tikehau Capital is expected to grow faster than the wider industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Tikehau Capital. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Tikehau Capital going forwards.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Tikehau Capital going out to 2026, and you can see them 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 with high insider ownership.

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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.

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