SIG Group AG (VTX:SIGN) Just Reported, And Analysts Assigned A CHF19.94 Price Target

There's been a notable change in appetite for SIG Group AG (VTX:SIGN) shares in the week since its half-yearly report, with the stock down 11% to CHF13.20. It was a credible result overall, with revenues of €1.6b and statutory earnings per share of €0.51 both in line with analyst estimates, showing that SIG Group is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SIG Group after the latest results.

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Taking into account the latest results, SIG Group's eleven analysts currently expect revenues in 2025 to be €3.39b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 13% to €0.59. Before this earnings report, the analysts had been forecasting revenues of €3.43b and earnings per share (EPS) of €0.63 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for SIG Group

The average price target fell 6.0% to CHF19.94, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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. The most optimistic SIG Group analyst has a price target of CHF25.93 per share, while the most pessimistic values it at CHF13.16. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that SIG Group's revenue growth is expected to slow, with the forecast 3.2% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. Compare this to the 35 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.7% per year. Factoring in the forecast slowdown in growth, it looks like SIG Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SIG Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SIG Group analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for SIG Group that you should be aware of.

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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.