Time To Worry? Analysts Just Downgraded Their Santander Bank Polska S.A. (WSE:SPL) Outlook

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

Following the latest downgrade, the current consensus, from the nine analysts covering Santander Bank Polska, is for revenues of zł11b in 2023, which would reflect a measurable 6.6% reduction in Santander Bank Polska's sales over the past 12 months. Before the latest update, the analysts were foreseeing zł13b of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Santander Bank Polska, given the measurable cut to revenue estimates.

See our latest analysis for Santander Bank Polska

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 6.6% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 7.3% 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 6.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Santander Bank Polska is expected to lag 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. 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 Santander Bank Polska after today.

Want more information? At least one of Santander Bank Polska's nine analysts has provided estimates out to 2025, which can be seen for 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.