The latest analyst coverage could presage a bad day for Pod Point Group Holdings Plc (LON:PODP), 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.
Following the latest downgrade, the current consensus, from the five analysts covering Pod Point Group Holdings, is for revenues of UK£62m in 2023, which would reflect an uncomfortable 13% reduction in Pod Point Group Holdings' sales over the past 12 months. Per-share losses are expected to explode, reaching UK£0.17 per share. Yet before this consensus update, the analysts had been forecasting revenues of UK£83m and losses of UK£0.13 per share in 2023. 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 expecting losses per share to increase.
Check out our latest analysis for Pod Point Group Holdings
The consensus price target fell 17% to UK£0.79, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Pod Point Group Holdings analyst has a price target of UK£1.20 per share, while the most pessimistic values it at UK£0.40. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Pod Point Group Holdings' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 13% by the end of 2023. This indicates a significant reduction from annual growth of 38% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pod Point Group Holdings is expected to lag the wider industry.