Analysts Are More Bearish On OSAI Automation System S.p.A. (BIT:OSA) Than They Used To Be

The latest analyst coverage could presage a bad day for OSAI Automation System S.p.A. (BIT:OSA), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon.

Following this downgrade, OSAI Automation System's three analysts are forecasting 2024 revenues to be €40m, approximately in line with the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 65% to €0.13. Yet prior to the latest estimates, the analysts had been forecasting revenues of €48m and losses of €0.10 per share in 2024. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for OSAI Automation System

The consensus price target fell 6.1% to €1.93, with the analysts 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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.9% by the end of 2024. This indicates a significant reduction from annual growth of 3.0% 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 13% annually for the foreseeable future. It's pretty clear that OSAI Automation System's revenues are expected to perform substantially worse 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 OSAI Automation System. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that OSAI Automation System's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of OSAI Automation System.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple OSAI Automation System analysts - going out to 2026, 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 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.