LEM Holding SA (VTX:LEHN) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

One of the biggest stories of last week was how LEM Holding SA (VTX:LEHN) shares plunged 24% in the week since its latest interim results, closing yesterday at CHF879. The result was fairly weak overall, with revenues of CHF157m being 3.4% less than what the analysts had been modelling. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LEM Holding after the latest results.

See our latest analysis for LEM Holding

After the latest results, the consensus from LEM Holding's four analysts is for revenues of CHF316.2m in 2025, which would reflect a measurable 6.7% decline in revenue compared to the last year of performance. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF354.3m and earnings per share (EPS) of CHF34.54 in 2025. Overall, while there's been a substantial drop in revenue estimates, the consensus now no longer provides an EPS estimate. This implies that after the latest results, the market believes revenue is more important.

We'd also point out that thatthe analysts have made no major changes to their price target of CHF1,532. 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. Currently, the most bullish analyst values LEM Holding at CHF1,818 per share, while the most bearish prices it at CHF1,300. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 13% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. It's pretty clear that LEM Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse 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.

We have estimates for LEM Holding from its four analysts out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 4 warning signs for LEM Holding (of which 1 is significant!) you should know about.

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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.