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

Market forces rained on the parade of Doxee S.p.A. (BIT:DOX) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Doxee's three analysts is for revenues of €26m in 2023, which would reflect an uncomfortable 11% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of €28m in 2023. The forecasts seem less optimistic overall, with the slight decrease in revenue estimates in the latest consensus update.

View our latest analysis for Doxee

Notably, the analysts have cut their price target 9.0% to €9.36, suggesting concerns around Doxee's valuation.

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. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 9.7% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that Doxee's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Doxee's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Doxee after today.

That said, the analysts might have good reason to be negative on Doxee, given dilutive stock issuance over the past year. For more information, you can click here to discover this and the 2 other warning signs we've identified.

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.