Analysts Have Been Trimming Their Nayax Ltd. (TLV:NYAX) Price Target After Its Latest Report

The full-year results for Nayax Ltd. (TLV:NYAX) were released last week, making it a good time to revisit its performance. It was a pretty bad result overall; while revenues were in line with expectations at US$174m, statutory losses exploded to US$1.14 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Nayax

Following the latest results, Nayax's dual analysts are now forecasting revenues of US$234.1m in 2023. This would be a major 35% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 54% to US$0.52. Before this earnings announcement, the analysts had been modelling revenues of US$230.4m and losses of US$0.92 per share in 2023. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very promising decrease in losses per share in particular.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 9.5% to ₪72.02. It looks likethe analysts have become less optimistic about the overall business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 35% growth on an annualised basis. That is in line with its 33% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So it's pretty clear that Nayax is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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 Nayax's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Nayax going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nayax you should be aware of, and 1 of them is potentially serious.

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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.