The Valiant Holding AG (VTX:VATN) Interim Results Are Out And Analysts Have Published New Forecasts

The half-year results for Valiant Holding AG (VTX:VATN) were released last week, making it a good time to revisit its performance. The results were positive, with revenue coming in at CHF211m, beating analyst expectations by 5.8%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Valiant Holding after the latest results.

Check out our latest analysis for Valiant Holding

Taking into account the latest results, the current consensus from Valiant Holding's four analysts is for revenues of CHF431.6m in 2021, which would reflect a credible 3.8% increase on its sales over the past 12 months. Statutory per-share earnings are expected to be CHF7.81, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CHF431.8m and earnings per share (EPS) of CHF7.66 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF97.00. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Valiant Holding analyst has a price target of CHF101 per share, while the most pessimistic values it at CHF90.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Valiant Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Valiant Holding's rate of growth is expected to accelerate meaningfully, with the forecast 7.8% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.4% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Valiant Holding is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Valiant Holding. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Valiant Holding going out to 2023, and you can see them free on our platform here..

You can also see whether Valiant Holding is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. 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.
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