Analysts Have Been Trimming Their Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC) Price Target After Its Latest Report

It's been a good week for Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC) shareholders, because the company has just released its latest first-quarter results, and the shares gained 7.8% to €41.20. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.0%to hit €2.3b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vitesco Technologies Group after the latest results.

View our latest analysis for Vitesco Technologies Group

Taking into account the latest results, the current consensus from Vitesco Technologies Group's 14 analysts is for revenues of €8.74b in 2022, which would reflect a satisfactory 5.2% increase on its sales over the past 12 months. Earnings are expected to improve, with Vitesco Technologies Group forecast to report a statutory profit of €1.41 per share. Before this earnings report, the analysts had been forecasting revenues of €8.66b and earnings per share (EPS) of €1.17 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target fell 6.7% to €53.75, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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. There are some variant perceptions on Vitesco Technologies Group, with the most bullish analyst valuing it at €72.00 and the most bearish at €34.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. For example, we noticed that Vitesco Technologies Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.0% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 3.7% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.9% per year. So while Vitesco Technologies Group's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Vitesco Technologies Group following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Vitesco Technologies Group going out to 2024, and you can see them free on our platform here.

Even so, be aware that Vitesco Technologies Group is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.