US$5.33: That's What Analysts Think ADS-TEC Energy PLC (NASDAQ:ADSE) Is Worth After Its Latest Results

Shareholders will be ecstatic, with their stake up 45% over the past week following ADS-TEC Energy PLC's (NASDAQ:ADSE) latest full-year results. It was a weak result overall, with ADS-TEC Energy reporting €26m in revenues, which was 38% less than what the analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for ADS-TEC Energy

Taking into account the latest results, the most recent consensus for ADS-TEC Energy from four analysts is for revenues of €80.1m in 2023 which, if met, would be a sizeable 203% increase on its sales over the past 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of €124.4m and losses of €0.42 per share in 2023. Overall, while there's been a large cut to revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that after the latest results, the market believes revenue is more important.

Intriguingly,the analysts have cut their price target 41% to US$5.33 showing a clear decline in sentiment around ADS-TEC Energy's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ADS-TEC Energy at US$8.00 per share, while the most bearish prices it at US$3.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that ADS-TEC Energy is forecast to grow faster in the future than it has in the past, with revenues expected to display 203% annualised growth until the end of 2023. If achieved, this would be a much better result than the 14% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.5% per year. So it looks like ADS-TEC Energy is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for ADS-TEC Energy next year. They also downgraded their revenue estimates, although industry data suggests that ADS-TEC Energy's revenues are expected to grow faster than the wider industry. Yet - earnings 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 ADS-TEC Energy's future valuation.

We have estimates for ADS-TEC Energy from its four analysts out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for ADS-TEC Energy that you need to take into consideration.

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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.