One Analyst Thinks Raketech Group Holding PLC's (STO:RAKE) Revenues Are Under Threat

One thing we could say about the covering analyst on Raketech Group Holding PLC (STO:RAKE) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

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After the downgrade, the consensus from Raketech Group Holding's single analyst is for revenues of €34m in 2025, which would reflect a disturbing 21% decline in sales compared to the last year of performance. Losses are predicted to fall substantially, shrinking 94% to €0.07 per share. Before this latest update, the analyst had been forecasting revenues of €46m and earnings per share (EPS) of €0.04 in 2025. There looks to have been a major change in sentiment regarding Raketech Group Holding's prospects, with a pretty serious reduction to revenues and the analyst now forecasting a loss instead of a profit.

View our latest analysis for Raketech Group Holding

The consensus price target fell 34% to kr6.65, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. We would highlight that sales are expected to reverse, with a forecast 37% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 18% 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 6.7% annually for the foreseeable future. It's pretty clear that Raketech Group 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 the analyst is expecting Raketech Group Holding to become unprofitable this year. Unfortunately the analyst also downgraded their revenue estimates, and industry data suggests that Raketech Group Holding's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.