The Covivio (EPA:COV) Analysts Have Been Trimming Their Sales Forecasts
The analysts covering Covivio (EPA:COV) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.
Following the latest downgrade, the four analysts covering Covivio provided consensus estimates of €676m revenue in 2026, which would reflect a painful 42% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €920m of revenue in 2026. It looks like forecasts have become a fair bit less optimistic on Covivio, given the pretty serious reduction to revenue estimates.
Check out our latest analysis for Covivio
We'd point out that there was no major changes to their price target of €62.55, suggesting the latest estimates were not enough to shift their view on the value of the business.
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 67% annualised revenue decline to the end of 2026. That is a notable change from historical growth of 3.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.5% annually for the foreseeable future. It's pretty clear that Covivio's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The clear low-light was that analysts slashing their revenue forecasts for Covivio this year. They also expect company revenue to perform worse than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Covivio going forwards.
Want to learn more? We have estimates for Covivio from its four analysts out until 2028, and you can see them free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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