Stock Analysis

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

SWX:YPSN
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It's been a mediocre week for Ypsomed Holding AG (VTX:YPSN) shareholders, with the stock dropping 11% to CHF364 in the week since its latest half-year results. Ypsomed Holding reported in line with analyst predictions, delivering revenues of CHF324m and statutory earnings per share of CHF5.74, suggesting the business is executing well and in line with its plan. 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 Ypsomed Holding after the latest results.

Check out our latest analysis for Ypsomed Holding

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SWX:YPSN Earnings and Revenue Growth November 17th 2024

Following the latest results, Ypsomed Holding's five analysts are now forecasting revenues of CHF664.7m in 2025. This would be a reasonable 7.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 56% to CHF8.48. Before this earnings report, the analysts had been forecasting revenues of CHF667.6m and earnings per share (EPS) of CHF8.57 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of CHF431, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ypsomed Holding analyst has a price target of CHF495 per share, while the most pessimistic values it at CHF326. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Ypsomed Holding's growth to accelerate, with the forecast 16% annualised growth to the end of 2025 ranking favourably alongside historical growth of 8.9% per annum 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 7.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Ypsomed Holding is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at CHF431, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Ypsomed 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 Ypsomed Holding (1 is potentially serious!) 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.