One Forecaster Is Now More Bearish On Atari SA (EPA:ATA) Than They Used To Be

One thing we could say about the covering analyst on Atari SA (EPA:ATA) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Atari's one analyst is for revenues of €23m in 2021, which would reflect a notable 8.1% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing €26m of revenue in 2021. It looks like forecasts have become a fair bit less optimistic on Atari, given the substantial drop in revenue estimates.

Check out our latest analysis for Atari

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. We would highlight that Atari's revenue growth is expected to slow, with forecast 8.1% increase next year well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% next year. So it's pretty clear that, while Atari's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. The analyst also expects revenues to grow faster than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Atari going forwards.

Need some more information? We have forecasts for Atari from one covering analyst, 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 that insiders are buying.

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