Earnings Release: Here's Why Analysts Cut Their Vetropack Holding AG (VTX:VETN) Price Target To CHF42.00

There's been a notable change in appetite for Vetropack Holding AG (VTX:VETN) shares in the week since its half-year report, with the stock down 13% to CHF26.25. Results look mixed - while revenue fell marginally short of analyst estimates at CHF413m, statutory earnings were in line with expectations, at CHF0.69 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, Vetropack Holding's three analysts currently expect revenues in 2025 to be CHF822.7m, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CHF848.2m and earnings per share (EPS) of CHF2.44 in 2025. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Check out our latest analysis for Vetropack Holding

Intriguingly,the analysts have cut their price target 6.7% to CHF42.00 showing a clear decline in sentiment around Vetropack Holding's valuation. 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 Vetropack Holding analyst has a price target of CHF45.00 per share, while the most pessimistic values it at CHF39.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vetropack Holding is an easy business to forecast or the the analysts are all using similar assumptions.

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 pretty clear that there is an expectation that Vetropack Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 4.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that Vetropack Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider 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.

At least one of Vetropack Holding's three analysts has provided estimates out to 2027, which can be seen for free on our platform here.

Even so, be aware that Vetropack Holding is showing 2 warning signs in our investment analysis , and 1 of those is significant...

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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.