Cause For Concern? One Analyst Thinks Harmony Energy Income Trust Plc's (LON:HEIT) Revenues Are Under Threat

The latest analyst coverage could presage a bad day for Harmony Energy Income Trust Plc (LON:HEIT), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the solo analyst covering Harmony Energy Income Trust is now predicting revenues of UK£28m in 2023. If met, this would reflect a decent 17% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of UK£46m in 2023. The consensus view seems to have become more pessimistic on Harmony Energy Income Trust, noting the pretty serious reduction to revenue estimates in this update.

See our latest analysis for Harmony Energy Income Trust

We'd point out that there was no major changes to their price target of UK£1.32, suggesting the latest estimates were not enough to shift their view on the value of the business.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Harmony Energy Income Trust this year. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Harmony Energy Income Trust after today.

Unsatisfied? One Harmony Energy Income Trust broker/analyst has provided estimates out to 2025, which can be seen for free on our platform here.

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