One thing we could say about the analysts on SHS VIVEON AG (ETR:SHWK) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.
Following the downgrade, the consensus from dual analysts covering SHS VIVEON is for revenues of €8.8m in 2022, implying a considerable 17% decline in sales compared to the last 12 months. Losses are supposed to balloon 255% to €1.22 per share. Yet before this consensus update, the analysts had been forecasting revenues of €10m and losses of €0.45 per share in 2022. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
See our latest analysis for SHS VIVEON
The consensus price target fell 44% to €6.70, implicitly signalling that lower earnings per share are a leading indicator for SHS VIVEON's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on SHS VIVEON, with the most bullish analyst valuing it at €10.60 and the most bearish at €6.80 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past three years, revenues have declined around 3.7% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 17% decline in revenue until the end of 2022. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 11% per year. So while a broad number of companies are forecast to grow, unfortunately SHS VIVEON is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away is that analysts increased their loss per share estimates for this year. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. After such a stark change in sentiment from analysts, we'd understand if readers now felt a bit wary of SHS VIVEON.