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The analysts covering H2APEX Group SCA (ETR:H2A) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. 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 three analysts covering H2APEX Group provided consensus estimates of €28m revenue in 2024, which would reflect a disturbing 25% decline on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 20% to €0.64. Yet before this consensus update, the analysts had been forecasting revenues of €35m and losses of €0.62 per share in 2024. 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 H2APEX Group
The consensus price target fell 12% to €8.90, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
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 a forecast 25% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 55% 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 9.5% per year. It's pretty clear that H2APEX Group's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at H2APEX Group. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that H2APEX Group's revenues are expected to grow slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of H2APEX Group's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on H2APEX Group after today.
That said, the analysts might have good reason to be negative on H2APEX Group, given a short cash runway. For more information, you can click here to discover this and the 2 other concerns we've identified.