This ATON Green Storage S.p.A. (BIT:ATON) Analyst Is Way More Bearish Than They Used To Be

The latest analyst coverage could presage a bad day for ATON Green Storage S.p.A. (BIT:ATON), with the covering analyst making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the lone analyst covering ATON Green Storage is now predicting revenues of €51m in 2023. If met, this would reflect an okay 6.2% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 2.7% to €0.76. Previously, the analyst had been modelling revenues of €58m and earnings per share (EPS) of €0.90 in 2023. Indeed, we can see that the analyst is a lot more bearish about ATON Green Storage's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for ATON Green Storage

It'll come as no surprise then, to learn that the analyst has cut their price target 29% to €7.70.

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 ATON Green Storage's revenue growth is expected to slow, with the forecast 6.2% annualised growth rate until the end of 2023 being well below the historical 18% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% per year. Even after the forecast slowdown in growth, it seems obvious that ATON Green Storage is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their earnings per share estimates, expecting a clear decline in business conditions. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. After such a stark change in sentiment from the analyst, we'd understand if readers now felt a bit wary of ATON Green Storage.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for ATON Green Storage going out as far as 2025, and you can see them 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.