Analyst Estimates: Here's What Brokers Think Of Lynch Group Holdings Limited (ASX:LGL) After Its Full-Year Report

Lynch Group Holdings Limited (ASX:LGL) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results overall were pretty much dead in line with analyst forecasts; revenues were AU$398m and statutory losses were AU$0.21 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Lynch Group Holdings

Following the latest results, Lynch Group Holdings' three analysts are now forecasting revenues of AU$418.1m in 2025. This would be a satisfactory 5.1% improvement in revenue compared to the last 12 months. Lynch Group Holdings is also expected to turn profitable, with statutory earnings of AU$0.088 per share. In the lead-up to this report, the analysts had been modelling revenues of AU$434.7m and earnings per share (EPS) of AU$0.11 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the AU$2.37 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Lynch Group Holdings analyst has a price target of AU$3.30 per share, while the most pessimistic values it at AU$1.90. 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 Lynch Group Holdings shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Lynch Group Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 8.8% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% annually. Factoring in the forecast slowdown in growth, it looks like Lynch Group Holdings is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lynch Group Holdings. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at AU$2.37, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Lynch Group Holdings going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Lynch Group Holdings that you should be aware of.

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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.