2CRSI S.A. (EPA:AL2SI) Analysts Just Cut Their EPS Forecasts Substantially

The latest analyst coverage could presage a bad day for 2CRSI S.A. (EPA:AL2SI), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

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Following the downgrade, the current consensus from 2CRSI's two analysts is for revenues of €1.2b in 2027 which - if met - would reflect a sizeable 201% increase on its sales over the past 12 months. Per-share earnings are expected to jump 254% to €2.67. Prior to this update, the analysts had been forecasting revenues of €1.3b and earnings per share (EPS) of €3.08 in 2027. Indeed, we can see that the analysts are a lot more bearish about 2CRSI's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

See our latest analysis for 2CRSI

It'll come as no surprise then, to learn that the analysts have cut their price target 60% to €19.10.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that 2CRSI's rate of growth is expected to accelerate meaningfully, with the forecast 201% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 23% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that 2CRSI is expected to grow much faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for 2CRSI. While analysts did downgrade their revenue estimates, these forecasts still imply revenues will perform better than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of 2CRSI.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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