Some Analysts Just Cut Their W.A.G payment solutions plc (LON:WPS) Estimates

The latest analyst coverage could presage a bad day for W.A.G payment solutions plc (LON:WPS), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the consensus from six analysts covering W.A.G payment solutions is for revenues of €2.3b in 2023, implying a discernible 4.2% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €2.5b of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on W.A.G payment solutions, given the substantial drop in revenue estimates.

View our latest analysis for W.A.G payment solutions

There was no particular change to the consensus price target of €1.63, with W.A.G payment solutions' latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values W.A.G payment solutions at €1.78 per share, while the most bearish prices it at €1.14. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 4.2% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 22% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 22% annually for the foreseeable future. It's pretty clear that W.A.G payment solutions' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for W.A.G payment solutions this year. They're also anticipating slower revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on W.A.G payment solutions after today.

Want to learn more? At least one of W.A.G payment solutions' six analysts has provided estimates 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.