Newsflash: Forsee Power S.A. (EPA:ALFOR) Analysts Have Been Trimming Their Revenue Forecasts

Today is shaping up negative for Forsee Power S.A. (EPA:ALFOR) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

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After the downgrade, the consensus from Forsee Power's two analysts is for revenues of €56m in 2026, which would reflect a small 7.0% decline in sales compared to the last year of performance. The loss per share is anticipated to greatly reduce in the near future, narrowing 51% to €0.15. However, before this estimates update, the consensus had been expecting revenues of €72m and €0.15 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also making no real change to the loss per share numbers.

Check out our latest analysis for Forsee Power

The consensus price target fell 18% to €0.18, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2026. This indicates a significant reduction from annual growth of 7.8% 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 4.6% per year. It's pretty clear that Forsee Power's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Forsee Power's revenues are expected to grow slower than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Forsee Power going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Forsee Power going out as far as 2028, and you can see them free on our platform here.

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