€36.29: That's What Analysts Think Stabilus SE (ETR:STM) Is Worth After Its Latest Results

Last week, you might have seen that Stabilus SE (ETR:STM) released its quarterly result to the market. The early response was not positive, with shares down 9.8% to €23.00 in the past week. Results were roughly in line with estimates, with revenues of €316m and statutory earnings per share of €0.40. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Stabilus from seven analysts is for revenues of €1.34b in 2026. If met, it would imply a credible 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 24% to €2.60. In the lead-up to this report, the analysts had been modelling revenues of €1.38b and earnings per share (EPS) of €3.19 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

View our latest analysis for Stabilus

It'll come as no surprise then, to learn that the analysts have cut their price target 15% to €36.29. 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. Currently, the most bullish analyst values Stabilus at €45.00 per share, while the most bearish prices it at €26.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Stabilus' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Stabilus is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Stabilus. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 Stabilus' future valuation.

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 estimates - from multiple Stabilus analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Stabilus (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.

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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.