Earnings Update: Here's Why Analysts Just Lifted Their AcadeMedia AB (publ) (STO:ACAD) Price Target To kr115
As you might know, AcadeMedia AB (publ) (STO:ACAD) recently reported its annual numbers. AcadeMedia reported in line with analyst predictions, delivering revenues of kr19b and statutory earnings per share of kr8.29, suggesting the business is executing well and in line with its plan. The analyst 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.
Following the latest results, AcadeMedia's one analyst are now forecasting revenues of kr20.0b in 2026. This would be an okay 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 27% to kr10.50. In the lead-up to this report, the analyst had been modelling revenues of kr20.5b and earnings per share (EPS) of kr10.60 in 2026. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.
See our latest analysis for AcadeMedia
The analyst has also increased their price target 21% to kr115, clearly signalling that lower revenue forecasts next year are not expected to have a material impact on AcadeMedia's valuation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that AcadeMedia's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.4% growth on an annualised basis. This is compared to a historical growth rate of 8.9% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.6% annually. So it's pretty clear that, while AcadeMedia's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analyst holding their earnings forecasts steady, in line with previous estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Yet - earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for AcadeMedia going out as far as 2028, and you can see them free on our platform here.
You can also see whether AcadeMedia is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.