Analysts Have Been Trimming Their Azerion Group N.V. (AMS:AZRN) Price Target After Its Latest Report

Last week, you might have seen that Azerion Group N.V. (AMS:AZRN) released its yearly result to the market. The early response was not positive, with shares down 2.3% to €2.92 in the past week. It was an okay report, and revenues came in at €453m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Azerion Group

After the latest results, the four analysts covering Azerion Group are now predicting revenues of €556.8m in 2023. If met, this would reflect a huge 23% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €560.3m and earnings per share (EPS) of €0.07 in 2023. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important after these latest results.

Intriguingly,the analysts have cut their price target 21% to €6.50 showing a clear decline in sentiment around Azerion Group's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Azerion Group analyst has a price target of €8.60 per share, while the most pessimistic values it at €3.90. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Azerion Group's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2023 being well below the historical 38% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% annually. Even after the forecast slowdown in growth, it seems obvious that Azerion Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Azerion Group's future valuation.

At least one of Azerion Group's four analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Azerion Group (1 is significant) you should be aware of.

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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.