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SMU: Future Efficiency Improvements Will Likely Drive Meaningful Earnings Upside

Chile And Peru Expansion And Digital Upgrades Will Unlock Opportunity

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SMU
AnalystConsensusTarget
Not Invested
Published 11 Feb 2025

Update shared on 11 Dec 2025

Fair value Decreased 3.42%
Previous
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AnalystConsensusTarget's Fair Value
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1Y
-7.9%
7D
-1.3%

Analysts have modestly reduced their price target on SMU by approximately $7 to roughly $188 per share. This reflects tempered expectations for revenue growth and profit margins, partially offset by a higher anticipated future price-to-earnings multiple.

What's in the News

  • SMU has scheduled an Analyst and Investor Day to present its 2026 to 2028 strategic plan, centered on growth, competitiveness, and efficiency (company event disclosure).
  • The company will hold a Special and Extraordinary Shareholders Meeting on December 18, 2025, in Las Condes, Santiago, Chile, to address key corporate matters (company meeting notice).

Valuation Changes

  • The fair value estimate has fallen modestly from CLP 195.0 per share to approximately CLP 188.3 per share, reflecting lower expectations for fundamentals partially offset by a richer multiple.
  • The discount rate has edged down slightly from 12.24 percent to about 12.20 percent, implying a marginally lower required return on equity.
  • Forecast revenue growth has declined significantly from 7.90 percent to roughly 5.12 percent, indicating a more cautious view on medium term top line expansion.
  • The net profit margin has been revised down from 2.95 percent to about 2.13 percent, signaling expectations for a leaner profitability profile.
  • The future P/E has risen meaningfully from 15.2x to approximately 22.0x, suggesting investors are expected to pay a higher multiple for SMU earnings despite softer operating assumptions.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.