Analysts Have Been Trimming Their Elica S.p.A. (BIT:ELC) Price Target After Its Latest Report

Shareholders might have noticed that Elica S.p.A. (BIT:ELC) filed its annual result this time last week. The early response was not positive, with shares down 8.3% to €1.89 in the past week. It was an okay result overall, with revenues coming in at €473m, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Elica after the latest results.

Check out our latest analysis for Elica

Following last week's earnings report, Elica's three analysts are forecasting 2024 revenues to be €472.0m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €473.8m and earnings per share (EPS) of €0.23 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

The average price target fell 5.3% to €2.38, withthe analysts clearly having become less optimistic about Elica'sprospects following its latest earnings. 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. The most optimistic Elica analyst has a price target of €2.50 per share, while the most pessimistic values it at €2.25. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Elica is an easy business to forecast or the the analysts are all using similar assumptions.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.3% by the end of 2024. This indicates a significant reduction from annual growth of 2.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.4% annually for the foreseeable future. It's pretty clear that Elica's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of Elica's three analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Elica that we have uncovered.

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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.