Analysts Have Been Trimming Their doValue S.p.A. (BIT:DOV) Price Target After Its Latest Report
One of the biggest stories of last week was how doValue S.p.A. (BIT:DOV) shares plunged 26% in the week since its latest interim results, closing yesterday at €1.80. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from doValue's five analysts is for revenues of €718.0m in 2026. This reflects a solid 20% improvement in revenue compared to the last 12 months. doValue is also expected to turn profitable, with statutory earnings of €0.095 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €732.6m and earnings per share (EPS) of €0.19 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
See our latest analysis for doValue
The average price target fell 18% to €2.70, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. Currently, the most bullish analyst values doValue at €3.30 per share, while the most bearish prices it at €2.20. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the doValue's past performance and to peers in the same industry. One thing stands out from these estimates, which is that doValue is forecast to grow faster in the future than it has in the past, with revenues expected to display 43% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.04% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. Not only are doValue's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for doValue going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 3 warning signs for doValue you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.