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The analysts covering Synergie SE (EPA:SDG) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the latest downgrade, the current consensus, from the three analysts covering Synergie, is for revenues of €2.1b in 2020, which would reflect a painful 21% reduction in Synergie's sales over the past 12 months. Before the latest update, the analysts were foreseeing €2.7b of revenue in 2020. The consensus view seems to have become more pessimistic on Synergie, noting the pretty serious reduction to revenue estimates in this update.
View our latest analysis for Synergie
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with the forecast 21% revenue decline a notable change from historical growth of 10% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Synergie is expected to lag the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Synergie this year. They're also anticipating slower revenue growth than the wider market. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Synergie, and a few readers might choose to steer clear of the stock.
Want to learn more? We have estimates for Synergie from its three analysts out until 2021, 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 that insiders are buying.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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