Analysts Just Shaved Their Netel Holding AB (publ) (STO:NETEL) Forecasts Dramatically

One thing we could say about the analysts on Netel Holding AB (publ) (STO:NETEL) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

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Following the latest downgrade, the twin analysts covering Netel Holding provided consensus estimates of kr3.0b revenue in 2025, which would reflect a measurable 7.1% decline on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr3.4b in 2025. The consensus view seems to have become more pessimistic on Netel Holding, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Netel Holding

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2025. This indicates a significant reduction from annual growth of 3.7% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.6% annually for the foreseeable future. It's pretty clear that Netel Holding'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. Given the serious cut to this year's outlook, it's clear that analysts have turned more bearish on Netel Holding, and we wouldn't blame shareholders for feeling a little more cautious themselves.

That said, the analysts might have good reason to be negative on Netel Holding, given its declining profit margins. For more information, you can click here to discover this and the 3 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 with high insider ownership.

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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.