Time To Worry? Analysts Just Downgraded Their Enel SpA (BIT:ENEL) Outlook

The analysts covering Enel SpA (BIT:ENEL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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Following the downgrade, the consensus from 19 analysts covering Enel is for revenues of €72b in 2025, implying a small 5.3% decline in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €86b in 2025. It looks like forecasts have become a fair bit less optimistic on Enel, given the measurable cut to revenue estimates.

View our latest analysis for Enel

We'd point out that there was no major changes to their price target of €8.14, suggesting the latest estimates were not enough to shift their view on the value of 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 Enel's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 7.0% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 6.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.7% per year. It's pretty clear that Enel's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Enel this year. They're also anticipating slower revenue growth than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Enel after today.

Unsatisfied? At least one of Enel's 19 analysts has provided estimates out to 2027, which can be seen for free on our platform 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.