RATIONAL Aktiengesellschaft (ETR:RAA) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, RATIONAL Aktiengesellschaft (ETR:RAA) recently reported its first-quarter numbers. Revenues of €295m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €5.00, missing estimates by 2.6%. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

We've discovered 1 warning sign about RATIONAL. View them for free.

Taking into account the latest results, the consensus forecast from RATIONAL's 14 analysts is for revenues of €1.26b in 2025. This reflects a credible 4.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €22.34, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €1.26b and earnings per share (EPS) of €22.40 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for RATIONAL

The analysts reconfirmed their price target of €772, showing that the business is executing well and in line with expectations. 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 RATIONAL, with the most bullish analyst valuing it at €1,015 and the most bearish at €585 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the RATIONAL's past performance and to peers in the same industry. We would highlight that RATIONAL's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.2% annually. Even after the forecast slowdown in growth, it seems obvious that RATIONAL is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €772, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for RATIONAL going out to 2027, and you can see them free on our platform here.

Even so, be aware that RATIONAL 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.