The latest analyst coverage could presage a bad day for Kempower Oyj (HEL:KEMPOWR), 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 analysts seeing grey clouds on the horizon.
After the downgrade, the five analysts covering Kempower Oyj are now predicting revenues of €286m in 2027. If met, this would reflect a modest 4.5% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 88% to €0.027 per share. Before this latest update, the analysts had been forecasting revenues of €345m and earnings per share (EPS) of €0.11 in 2027. So we can see that the consensus has become notably more bearish on Kempower Oyj's outlook with these numbers, making a measurable cut to next year's revenue estimates. Furthermore, they expect the business to be loss-making next year, compared to their previous forecasts of a profit.
Check out our latest analysis for Kempower Oyj
The consensus price target fell 41% to €6.42, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Kempower Oyj's revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2027 being well below the historical 26% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kempower Oyj.
The Bottom Line
The biggest low-light for us was that the forecasts for Kempower Oyj dropped from profits to a loss next year. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Kempower Oyj's revenues are expected to grow slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Kempower Oyj analysts - going out to 2028, and you can see them free on our platform here.
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