Analysts Have Been Trimming Their E2open Parent Holdings, Inc. (NYSE:ETWO) Price Target After Its Latest Report

Shareholders of E2open Parent Holdings, Inc. (NYSE:ETWO) will be pleased this week, given that the stock price is up 13% to US$2.40 following its latest full-year results. Revenues were in line with expectations, at US$608m, while statutory losses ballooned to US$2.14 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following last week's earnings report, E2open Parent Holdings' five analysts are forecasting 2026 revenues to be US$607.6m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to US$0.19. Before this earnings announcement, the analysts had been modelling revenues of US$611.5m and losses of US$0.19 per share in 2026. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

See our latest analysis for E2open Parent Holdings

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 15% to US$2.24. It looks likethe analysts have become less optimistic about the overall business. 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. There are some variant perceptions on E2open Parent Holdings, with the most bullish analyst valuing it at US$2.50 and the most bearish at US$2.00 per share. This is a very narrow spread of estimates, implying either that E2open Parent Holdings is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the E2open Parent Holdings' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.02% by the end of 2026. This indicates a significant reduction from annual growth of 5.7% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 12% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - E2open Parent Holdings is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that E2open Parent Holdings' revenue is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for E2open Parent Holdings going out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - E2open Parent Holdings has 1 warning sign we think 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.