Analysts Have Been Trimming Their Knaus Tabbert AG (ETR:KTA) Price Target After Its Latest Report

As you might know, Knaus Tabbert AG (ETR:KTA) recently reported its quarterly numbers. Knaus Tabbert reported in line with analyst predictions, delivering revenues of €247m and statutory earnings per share of €2.50, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Knaus Tabbert's six analysts is for revenues of €1.21b in 2023, which would reflect a huge 30% increase on its sales over the past 12 months. Statutory earnings per share are predicted to surge 215% to €3.93. Before this earnings report, the analysts had been forecasting revenues of €1.20b and earnings per share (EPS) of €4.63 in 2023. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target fell 8.8% to €51.93, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. There are some variant perceptions on Knaus Tabbert, with the most bullish analyst valuing it at €77.00 and the most bearish at €27.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Knaus Tabbert's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Knaus Tabbert to grow faster than 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 Knaus Tabbert. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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 Knaus Tabbert's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Knaus Tabbert going out to 2024, 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 Knaus Tabbert you should be aware of, and 3 of them don't sit too well with us.

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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.