Analysts Are Betting On Semperit Aktiengesellschaft Holding (VIE:SEM) With A Big Upgrade This Week

Semperit Aktiengesellschaft Holding (VIE:SEM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Semperit Holding's three analysts is for revenues of €1.0b in 2022, which would reflect a considerable 15% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to nosedive 84% to €1.87 in the same period. Prior to this update, the analysts had been forecasting revenues of €908m and earnings per share (EPS) of €1.77 in 2022. The forecasts seem more optimistic now, with a decent improvement in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Semperit Holding

Despite these upgrades, the analysts have not made any major changes to their price target of €36.67, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Semperit Holding analyst has a price target of €45.00 per share, while the most pessimistic values it at €28.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Semperit Holding shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Semperit Holding's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2022. This indicates a significant reduction from annual growth of 5.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 7.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Semperit Holding is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Semperit Holding.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Semperit Holding analysts - going out to 2024, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.