The Raketech Group Holding PLC (STO:RAKE) Analysts Have Been Trimming Their Sales Forecasts

One thing we could say about the analysts 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. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the consensus from Raketech Group Holding's dual analysts is for revenues of €68m in 2025, which would reflect a small 5.6% decline in sales compared to the last year of performance. Losses are expected to turn into profits real soon, with the analysts forecasting €0.13 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of €78m and earnings per share (EPS) of €0.20 in 2025. It looks like analyst sentiment has declined substantially, with a measurable cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Raketech Group Holding

The consensus price target fell 29% to kr17.00, with the weaker earnings outlook clearly leading analyst valuation estimates.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 4.5% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 27% 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 11% 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 issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Raketech Group Holding. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Raketech Group Holding's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Raketech Group Holding's future valuation. 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 Raketech Group Holding after today.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Raketech Group Holding going out as far as 2026, and you can see them 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 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.