Analysts Are Updating Their Syensqo SA/NV (EBR:SYENS) Estimates After Its Second-Quarter Results

Syensqo SA/NV (EBR:SYENS) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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After the latest results, the consensus from Syensqo's 15 analysts is for revenues of €6.53b in 2025, which would reflect a measurable 2.1% decline in revenue compared to the last year of performance. Syensqo is also expected to turn profitable, with statutory earnings of €2.59 per share. Before this earnings report, the analysts had been forecasting revenues of €6.54b and earnings per share (EPS) of €2.93 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

Check out our latest analysis for Syensqo

It might be a surprise to learn that the consensus price target was broadly unchanged at €81.81, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Syensqo analyst has a price target of €95.00 per share, while the most pessimistic values it at €70.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. Over the past year, revenues have declined around 1.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.2% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 6.5% annually. While Syensqo's negative revenue trend is expected to moderate, they are still expected to shrink next year albeit at a slower rate than 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 Syensqo. Fortunately, they also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Their estimates also suggest that Syensqo's revenue is expected to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Syensqo. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Syensqo analysts - going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Syensqo's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.