Newsflash: Covivio (EPA:COV) Analysts Have Been Trimming Their Revenue Forecasts

The analysts covering Covivio (EPA:COV) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following this downgrade, Covivio's nine analysts are forecasting 2024 revenues to be €933m, approximately in line with the last 12 months. Before the latest update, the analysts were foreseeing €1.1b of revenue in 2024. The consensus view seems to have become more pessimistic on Covivio, noting the measurable cut to revenue estimates in this update.

Check out our latest analysis for Covivio

There was no particular change to the consensus price target of €50.80, with Covivio's latest outlook seemingly not enough to result in a change of 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. From these estimates it looks as though the analysts expect the years of declining sales to come to an end, given the flat revenue forecast out to 2024. That would be a definite improvement, given that the past five years have seen sales shrink 3.8% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.3% per year. Not only are Covivio's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Covivio this year. Analysts also expect revenues to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Covivio after today.

So things certainly aren't looking great, and you should also know that we've spotted some potential warning signs with Covivio, including dilutive stock issuance over the past year. Learn more, and discover the 2 other warning signs we've identified, 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.