Downgrade: What You Need To Know About The Latest Thunderful Group AB (STO:THUNDR) Forecasts

Today is shaping up negative for Thunderful Group AB (STO:THUNDR) shareholders, with the covering analyst delivering a substantial negative revision to next year's forecasts. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the latest downgrade, the current consensus, from the solo analyst covering Thunderful Group, is for revenues of kr3.1b in 2024, which would reflect a measurable 3.5% reduction in Thunderful Group's sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of kr3.5b in 2024. The consensus view seems to have become more pessimistic on Thunderful Group, noting the measurable cut to revenue estimates in this update.

View our latest analysis for Thunderful Group

The consensus price target fell 30% to kr15.00, with the analyst clearly less optimistic about Thunderful Group's valuation following this update.

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 2.8% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 11% 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 8.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Thunderful Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for next year. They also expect company revenue to perform worse than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Thunderful Group'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 Thunderful Group after today.

Of course, this isn't the full story. We have forecasts for Thunderful Group from one covering analyst, and you can see them free on our platform here.

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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.