Analysts Have Been Trimming Their EKINOPS S.A. (EPA:EKI) Price Target After Its Latest Report

It's been a mediocre week for EKINOPS S.A. (EPA:EKI) shareholders, with the stock dropping 17% to €3.49 in the week since its latest first-quarter results. The result was fairly weak overall, with revenues of €29m being 4.7% less than what the analysts had been modelling. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following last week's earnings report, EKINOPS' five analysts are forecasting 2025 revenues to be €117.8m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €121.8m and earnings per share (EPS) of €0.25 in 2025. Overall, while there's been a small dip in revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Check out our latest analysis for EKINOPS

Intriguingly,the analysts have cut their price target 6.4% to €4.98 showing a clear decline in sentiment around EKINOPS' valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values EKINOPS at €6.00 per share, while the most bearish prices it at €4.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await EKINOPS shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EKINOPS' past performance and to peers in the same industry. It's pretty clear that there is an expectation that EKINOPS' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.5% growth on an annualised basis. This is compared to a historical growth rate of 5.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that EKINOPS is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of EKINOPS' future valuation.

At least one of EKINOPS' five analysts has provided estimates out to 2027, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for EKINOPS that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.