This Tecma Solutions S.p.A. (BIT:TCM) Analyst Is Way More Bearish Than They Used To Be

The analyst covering Tecma Solutions S.p.A. (BIT:TCM) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analyst seeing grey clouds on the horizon.

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Following the downgrade, the most recent consensus for Tecma Solutions from its lone analyst is for revenues of €16m in 2025 which, if met, would be a credible 3.0% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 19% per share from last year to €0.16 per share. Yet before this consensus update, the analyst had been forecasting revenues of €18m and losses of €0.07 per share in 2025. Ergo, there's been a clear change in sentiment, with the analyst 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 Tecma Solutions

The consensus price target fell 10.0% to €3.60, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 6.1% growth on an annualised basis. That is in line with its 6.2% annual growth over the past three years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 2.5% per year. So not only is Tecma Solutions expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Sadly they also cut their revenue estimates, although at least the company is expected to perform a bit better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for 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.