Analysts Have Been Trimming Their Grolleau Société Anonyme (EPA:ALGRO) Price Target After Its Latest Report

Shareholders of Grolleau Société Anonyme (EPA:ALGRO) will be pleased this week, given that the stock price is up 13% to €5.88 following its latest yearly results. It was an okay result overall, with revenues coming in at €34m, roughly what the analyst had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Grolleau Société Anonyme

After the latest results, the consensus from Grolleau Société Anonyme's sole analyst is for revenues of €29.0m in 2024, which would reflect a chunky 15% decline in revenue compared to the last year of performance. Before this earnings announcement, the analyst had been modelling revenues of €30.5m and losses of €0.31 per share in 2024. 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.

The average price target fell 7.0% to €5.30, withthe analyst clearly having become less optimistic about Grolleau Société Anonyme'sprospects following its latest earnings.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 15% by the end of 2024. This indicates a significant reduction from annual growth of 5.5% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.2% annually for the foreseeable future. The forecasts do look bearish for Grolleau Société Anonyme, since they're expecting it to shrink faster than 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 cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. 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 Grolleau Société Anonyme's future valuation.

One Grolleau Société Anonyme broker/analyst has provided estimates out to 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Grolleau Société Anonyme , and understanding these should be part of your investment process.

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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.