Raketech Group Holding PLC (STO:RAKE) Analysts Are Cutting Their Estimates: Here's What You Need To Know

It's shaping up to be a tough period for Raketech Group Holding PLC (STO:RAKE), which a week ago released some disappointing annual results that could have a notable impact on how the market views the stock. Revenues missed expectations somewhat, coming in at €61m, but statutory earnings fell catastrophically short, with a loss of €1.28 some 447% larger than what the analysts had predicted. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Raketech Group Holding

Following the recent earnings report, the consensus from three analysts covering Raketech Group Holding is for revenues of €54.3m in 2025. This implies a chunky 11% decline in revenue compared to the last 12 months. Raketech Group Holding is also expected to turn profitable, with statutory earnings of €0.08 per share. In the lead-up to this report, the analysts had been modelling revenues of €67.7m and earnings per share (EPS) of €0.11 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

The consensus price target fell 16% to kr13.17, with the weaker earnings outlook clearly leading valuation estimates. 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 Raketech Group Holding analyst has a price target of kr15.00 per share, while the most pessimistic values it at kr11.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Raketech Group Holding's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 11% annualised decline to the end of 2025. That is a notable change from historical growth of 25% 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 8.0% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Raketech Group Holding. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Raketech Group Holding's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Raketech Group Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Raketech Group Holding analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Raketech Group Holding 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.