These Analysts Think Wallbox N.V.'s (NYSE:WBX) Sales Are Under Threat
The latest analyst coverage could presage a bad day for Wallbox N.V. (NYSE:WBX), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
After this downgrade, Wallbox's seven analysts are now forecasting revenues of €157m in 2023. This would be a solid 8.6% improvement in sales compared to the last 12 months. The loss per share is expected to ameliorate slightly, reducing to €0.58. However, before this estimates update, the consensus had been expecting revenues of €178m and €0.54 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.
View our latest analysis for Wallbox
The consensus price target fell 31% to US$3.63, implicitly signalling that lower earnings per share are a leading indicator for Wallbox's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wallbox's past performance and to peers in the same industry. We would highlight that Wallbox's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2023 being well below the historical 29% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.2% annually. So it's pretty clear that, while Wallbox's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Wallbox. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Wallbox's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Wallbox after today.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Wallbox analysts - going out to 2025, and you can see them 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 that insiders are buying.
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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.
