Analysts Have Made A Financial Statement On Nexity SA's (EPA:NXI) Half-Year Report
It's been a mediocre week for Nexity SA (EPA:NXI) shareholders, with the stock dropping 15% to €6.64 in the week since its latest half-year results. Revenues were €1.1b, and Nexity was a dismal 11% short of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nexity after the latest results.
Following last week's earnings report, Nexity's five analysts are forecasting 2026 revenues to be €2.56b, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 88% to €0.37. Yet prior to the latest earnings, the analysts had been forecasting revenues of €2.65b and losses of €0.37 per share in 2026.
View our latest analysis for Nexity
The consensus price target was broadly unchanged at €11.42, implying that the business is performing roughly in line with expectations, despite a downwards adjustment to forecast revenue next year. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nexity, with the most bullish analyst valuing it at €14.00 and the most bearish at €8.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nexity's past performance and to peers in the same industry. We would also point out that the forecast 1.8% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 12% annually over the past five years By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 0.3% per year. So it's pretty clear that Nexity revenue is expected to decline at a faster rate than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Unfortunately they also downgraded their revenue estimates, and our analysts estimates suggest that Nexity is still expected to perform worse than the wider industry. The consensus price target held steady at €11.42, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Nexity going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for Nexity that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.