Australian Finance Group Limited (ASX:AFG) Released Earnings Last Week And Analysts Lifted Their Price Target To AU$2.88

Shareholders of Australian Finance Group Limited (ASX:AFG) will be pleased this week, given that the stock price is up 13% to AU$2.80 following its latest yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at AU$1.2b, statutory earnings beat expectations 2.5%, with Australian Finance Group reporting profits of AU$0.13 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the twin analysts covering Australian Finance Group are now predicting revenues of AU$1.36b in 2026. If met, this would reflect a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 32% to AU$0.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$1.33b and earnings per share (EPS) of AU$0.15 in 2026. So it seems there's been a definite increase in optimism about Australian Finance Group's future following the latest results, with a substantial gain in the earnings per share forecasts in particular.

See our latest analysis for Australian Finance Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 34% to AU$2.88per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Australian Finance Group's past performance and to peers in the same industry. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 7.1% per year. So it's clear that not only is revenue growth expected to be maintained, but Australian Finance Group is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Australian Finance Group following these results. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

Even so, be aware that Australian Finance Group is showing 2 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.