Some Analysts Just Cut Their Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) Estimates

The analysts covering Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Terna Energy Societe Anonyme Commercial Technical's five analysts is for revenues of €275m in 2021, which would reflect a not inconsiderable 18% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of €343m in 2021. It looks like forecasts have become a fair bit less optimistic on Terna Energy Societe Anonyme Commercial Technical, given the measurable cut to revenue estimates.

View our latest analysis for Terna Energy Societe Anonyme Commercial Technical

We'd point out that there was no major changes to their price target of €16.58, suggesting the latest estimates were not enough to shift their view on the value of the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Terna Energy Societe Anonyme Commercial Technical at €18.00 per share, while the most bearish prices it at €15.40. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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 sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 8.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Terna Energy Societe Anonyme Commercial Technical's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They're also anticipating slower revenue growth than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Terna Energy Societe Anonyme Commercial Technical going forwards.

Thirsting for more data? At least one of Terna Energy Societe Anonyme Commercial Technical's five analysts has provided estimates out to 2023, which can be seen for 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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This article by Simply Wall St is general in nature. 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.
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