What You Need To Know About The Energy S.p.A. (BIT:ENY) Analyst Downgrade Today

Market forces rained on the parade of Energy S.p.A. (BIT:ENY) shareholders today, when the analysts downgraded their forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. At €0.87, shares are up 4.6% in the past 7 days. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

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After this downgrade, Energy's twin analysts are now forecasting revenues of €41m in 2025. This would be a substantial 23% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 86% to €0.041 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of €49m and losses of €0.037 per share in 2025. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

Check out our latest analysis for Energy

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Energy's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 43% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.5% per year. Not only are Energy's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Energy. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Energy after today.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Energy going out as far as 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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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.