kr42.00: That's What Analysts Think Acast AB (publ) (STO:ACAST) Is Worth After Its Latest Results
Acast AB (publ) (STO:ACAST) shareholders are probably feeling a little disappointed, since its shares fell 8.0% to kr29.80 in the week after its latest third-quarter results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following the latest results, Acast's twin analysts are now forecasting revenues of kr3.70b in 2027. This would be a major 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 85% to kr1.44. In the lead-up to this report, the analysts had been modelling revenues of kr3.71b and earnings per share (EPS) of kr1.50 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Acast
The average price target fell 7.4% to kr42.00, with reduced earnings forecasts clearly tied to a lower valuation estimate.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Acast'shistorical trends, as the 20% annualised revenue growth to the end of 2027 is roughly in line with the 21% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.5% annually. So although Acast is expected to maintain its revenue growth rate, it's definitely expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.
You can also see our analysis of Acast's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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