Bucher Industries AG (VTX:BUCN) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Bucher Industries AG (VTX:BUCN) had a good week, as its shares rose 2.3% to close at CHF449 following the release of its yearly results. It was a credible result overall, with revenues of CHF2.7b and statutory earnings per share of CHF14.71 both in line with analyst estimates, showing that Bucher Industries is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Bucher Industries

Following the latest results, Bucher Industries' eight analysts are now forecasting revenues of CHF3.00b in 2021. This would be a decent 9.4% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 31% to CHF19.23. In the lead-up to this report, the analysts had been modelling revenues of CHF2.95b and earnings per share (EPS) of CHF18.64 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.0% to CHF415, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bucher Industries analyst has a price target of CHF530 per share, while the most pessimistic values it at CHF360. 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 Bucher Industries shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Bucher Industries' growth to accelerate, with the forecast 9.4% annualised growth to the end of 2021 ranking favourably alongside historical growth of 5.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bucher Industries to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bucher Industries' earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Bucher Industries going out to 2023, and you can see them free on our platform here.

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

When trading Bucher Industries or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.