Partners Group Holding AG (VTX:PGHN) Just Reported Half-Yearly Earnings And Analysts Are Lifting Their Estimates

Partners Group Holding AG (VTX:PGHN) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to CHF1,069 in the week after its latest half-year results. It was a workmanlike result, with revenues of CHF1.2b coming in 3.8% ahead of expectations, and statutory earnings per share of CHF43.08, in line with analyst appraisals. 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.

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Taking into account the latest results, the most recent consensus for Partners Group Holding from twelve analysts is for revenues of CHF2.50b in 2025. If met, it would imply a meaningful 8.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 3.8% to CHF47.93. Before this earnings report, the analysts had been forecasting revenues of CHF2.28b and earnings per share (EPS) of CHF45.03 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Partners Group Holding

Despite these upgrades,the analysts have not made any major changes to their price target of CHF1,242, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Partners Group Holding analyst has a price target of CHF1,475 per share, while the most pessimistic values it at CHF1,120. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Partners Group Holding's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.9% 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 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Partners Group Holding is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Partners Group Holding following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at CHF1,242, 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. We have forecasts for Partners Group Holding going out to 2027, 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 Partners Group Holding (1 shouldn't be ignored!) that we have uncovered.

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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.