Analyst Estimates: Here's What Brokers Think Of Telecom Italia S.p.A. (BIT:TIT) After Its Third-Quarter Report

Investors in Telecom Italia S.p.A. (BIT:TIT) had a good week, as its shares rose 4.7% to close at €0.23 following the release of its third-quarter results. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Telecom Italia

After the latest results, the consensus from Telecom Italia's six analysts is for revenues of €14.8b in 2025, which would reflect a definite 10% decline in revenue compared to the last year of performance. Yet prior to the latest earnings, the analysts had been anticipated revenues of €14.8b and earnings per share (EPS) of €0.011 in 2025. 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.

There's been no real change to the consensus price target of €0.32, with Telecom Italia seemingly executing in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Telecom Italia analyst has a price target of €0.40 per share, while the most pessimistic values it at €0.20. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Telecom Italia's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Telecom Italia's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 8.3% to the end of 2025. This tops off a historical decline of 1.7% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.1% per year. So while a broad number of companies are forecast to grow, unfortunately Telecom Italia is expected to see its revenue affected worse than other companies in the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Telecom Italia's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for Telecom Italia from its six analysts out to 2026, and you can see them free on our platform here.

You can also view our analysis of Telecom Italia's balance sheet, and whether we think Telecom Italia is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.