Altea Green Power S.p.A. (BIT:AGP) Analysts Just Cut Their EPS Forecasts Substantially

Market forces rained on the parade of Altea Green Power S.p.A. (BIT:AGP) shareholders today, when the analysts downgraded their forecasts for this year. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

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Following the downgrade, the current consensus from Altea Green Power's four analysts is for revenues of €42m in 2025 which - if met - would reflect a sizeable 104% increase on its sales over the past 12 months. Per-share earnings are expected to jump 169% to €1.00. Before this latest update, the analysts had been forecasting revenues of €50m and earnings per share (EPS) of €1.16 in 2025. Indeed, we can see that the analysts are a lot more bearish about Altea Green Power's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Altea Green Power

Despite the cuts to forecast earnings, there was no real change to the €11.45 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Altea Green Power's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 104% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 20% a year over the past year. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 8.9% annually. So it looks like Altea Green Power is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of Altea Green Power.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Altea Green Power analysts - going out to 2027, and you can see them 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 with high insider ownership.

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