LEM Holding SA (VTX:LEHN) Just Reported Earnings, And Analysts Cut Their Target Price

One of the biggest stories of last week was how LEM Holding SA (VTX:LEHN) shares plunged 25% in the week since its latest first-quarter results, closing yesterday at CHF664. It was an okay report, and revenues came in at CHF76m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following the latest results, LEM Holding's four analysts are now forecasting revenues of CHF327.0m in 2026. This would be a meaningful 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 200% to CHF14.76. Before this earnings report, the analysts had been forecasting revenues of CHF343.2m and earnings per share (EPS) of CHF26.35 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Check out our latest analysis for LEM Holding

It'll come as no surprise then, to learn that the analysts have cut their price target 25% to CHF852. 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 LEM Holding analyst has a price target of CHF940 per share, while the most pessimistic values it at CHF800. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting LEM Holding's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. LEM Holding is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LEM Holding's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple LEM Holding analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for LEM Holding 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.