What Does The Future Hold For Tikehau Capital (EPA:TKO)? These Analysts Have Been Cutting Their Estimates

Today is shaping up negative for Tikehau Capital (EPA:TKO) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After this downgrade, Tikehau Capital's six analysts are now forecasting revenues of €102m in 2020. This would be a substantial 58% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €154m in 2020. The consensus view seems to have become more pessimistic on Tikehau Capital, noting the pretty serious reduction to revenue estimates in this update.

See our latest analysis for Tikehau Capital

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. 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 58%. 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 8.3% next year. So it looks like Tikehau Capital 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. The analysts also expect revenues to grow faster than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Tikehau Capital after today.

Hungry for more information? We have estimates for Tikehau Capital from its six analysts out until 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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