Stock Analysis

Here's What Analysts Are Forecasting For Ypsomed Holding AG (VTX:YPSN) After Its Full-Year Results

SWX:YPSN
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Shareholders of Ypsomed Holding AG (VTX:YPSN) will be pleased this week, given that the stock price is up 18% to CHF387 following its latest yearly results. Ypsomed Holding reported CHF548m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CHF5.74 beat expectations, being 3.2% higher than what the analysts expected. 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.

View our latest analysis for Ypsomed Holding

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SWX:YPSN Earnings and Revenue Growth May 25th 2024

Taking into account the latest results, the consensus forecast from Ypsomed Holding's twin analysts is for revenues of CHF687.0m in 2025. This reflects a substantial 25% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 51% to CHF8.67. In the lead-up to this report, the analysts had been modelling revenues of CHF660.7m and earnings per share (EPS) of CHF8.70 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CHF352, implying that the uplift in revenue is not expected to greatly contribute to Ypsomed Holding's valuation in the near term.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ypsomed Holding's past performance and to peers in the same industry. The analysts are definitely expecting Ypsomed Holding's growth to accelerate, with the forecast 25% annualised growth to the end of 2025 ranking favourably alongside historical growth of 6.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ypsomed Holding to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting them 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Ypsomed Holding , and understanding it should be part of your investment process.

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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.