Komax Holding AG (VTX:KOMN) Analysts Are Pretty Bullish On The Stock After Recent Results

Komax Holding AG (VTX:KOMN) just released its latest annual results and things are looking bullish. The results overall were pretty good, with revenues of CHF359m exceeding expectations and statutory losses coming in at justCHF0.34 per share, some 74% below what the analysts had forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Komax Holding

Taking into account the latest results, the consensus forecast from Komax Holding's six analysts is for revenues of CHF387.2m in 2021, which would reflect a reasonable 8.0% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Komax Holding forecast to report a statutory profit of CHF5.82 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF379.6m and earnings per share (EPS) of CHF4.79 in 2021. So it seems there's been a definite increase in optimism about Komax Holding's future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Komax Holding 5.8% to CHF203on the back of these upgrades. 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. There are some variant perceptions on Komax Holding, with the most bullish analyst valuing it at CHF270 and the most bearish at CHF118 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. One thing stands out from these estimates, which is that Komax Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.0% annualised growth until the end of 2021. If achieved, this would be a much better result than the 19% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.8% per year. So it looks like Komax Holding is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Komax Holding's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Komax Holding going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Komax Holding (1 is concerning!) that we have uncovered.

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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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