ES Group AB (publ) (STO:ESGR B) Just Reported, And Analysts Assigned A kr28.50 Price Target
Last week, you might have seen that ES Group AB (publ) (STO:ESGR B) released its quarterly result to the market. The early response was not positive, with shares down 2.7% to kr14.55 in the past week. Revenues fell badly short of expectations, with revenue of kr20m, missing analyst estimates by 23%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ES Group after the latest results.
Taking into account the latest results, the most recent consensus for ES Group from twin analysts is for revenues of kr221.0m in 2026. If met, it would imply a solid 17% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 63% to kr1.18. Before this latest report, the consensus had been expecting revenues of kr215.0m and kr1.71 per share in losses. So it seems there's been a definite increase in optimism about ES Group's future following the latest consensus numbers, with a very favorable reduction to the loss per share forecasts in particular.
Check out our latest analysis for ES Group
Yet despite these upgrades, the analysts cut their price target 19% to kr28.50, implicitly signalling that the ongoing losses are likely to weigh negatively on ES Group'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. The analysts are definitely expecting ES Group's growth to accelerate, with the forecast 37% annualised growth to the end of 2026 ranking favourably alongside historical growth of 9.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ES Group is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
It is also worth noting that we have found 2 warning signs for ES Group that you need to take into consideration.
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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.