Forecast: Analysts Think Semperit Aktiengesellschaft Holding's (VIE:SEM) Business Prospects Have Improved Drastically

Semperit Aktiengesellschaft Holding (VIE:SEM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Semperit Holding has also found favour with investors, with the stock up a remarkable 13% to €34.40 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the three analysts covering Semperit Holding are now predicting revenues of €1.2b in 2021. If met, this would reflect a substantial 25% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 34% to €12.17. Prior to this update, the analysts had been forecasting revenues of €970m and earnings per share (EPS) of €5.96 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Semperit Holding

It will come as no surprise to learn that the analysts have increased their price target for Semperit Holding 19% to €38.07 on the back of these upgrades. 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 €30.70. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. For example, we noticed that Semperit Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 1.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.3% per year. Not only are Semperit Holding's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Semperit Holding.

Analysts are definitely bullish on Semperit Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 4 other risks we've identified .

We also provide an overview of the Semperit Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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