Notorious Pictures S.p.A.'s (BIT:NPI) Analyst Just Slashed This Year's Estimates

One thing we could say about the covering analyst on Notorious Pictures S.p.A. (BIT:NPI) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

Following the downgrade, the current consensus from Notorious Pictures' sole analyst is for revenues of €41m in 2023 which - if met - would reflect a sizeable 25% increase on its sales over the past 12 months. Statutory earnings per share are supposed to decrease 8.3% to €0.20 in the same period. Previously, the analyst had been modelling revenues of €46m and earnings per share (EPS) of €0.24 in 2023. Indeed, we can see that the analyst is a lot more bearish about Notorious Pictures' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Notorious Pictures

It'll come as no surprise then, to learn that the analyst has cut their price target 9.1% to €2.00.

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. For example, we noticed that Notorious Pictures' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 3.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 11% per year. So it looks like Notorious Pictures is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Notorious Pictures. 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 Notorious Pictures.

That said, this analyst might have good reason to be negative on Notorious Pictures, given a weak balance sheet. For more information, you can click here to discover this and the 4 other flags we've identified.

We also provide an overview of the Notorious Pictures Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.