This Analyst Just Downgraded Their Lepermislibre Société anonyme (EPA:ALLPL) EPS Forecasts

Today is shaping up negative for Lepermislibre Société anonyme (EPA:ALLPL) shareholders, with the covering analyst delivering a substantial negative revision to this year's forecasts. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

Following the downgrade, the latest consensus from Lepermislibre Société anonyme's solitary analyst is for revenues of €19m in 2023, which would reflect a substantial 27% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 59% to €0.15. However, before this estimates update, the consensus had been expecting revenues of €21m and €0.08 per share in losses. Ergo, there's been a clear change in sentiment, with the analyst administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Lepermislibre Société anonyme

The consensus price target fell 13% to €3.50, implicitly signalling that lower earnings per share are a leading indicator for Lepermislibre Société anonyme'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. The analyst is definitely expecting Lepermislibre Société anonyme's growth to accelerate, with the forecast 27% annualised growth to the end of 2023 ranking favourably alongside historical growth of 22% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Lepermislibre Société anonyme is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of Lepermislibre Société anonyme.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2025, which can be seen for 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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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.