Deutsche Beteiligungs AG (ETR:DBAN) Analysts Are Pretty Bullish On The Stock After Recent Results

Deutsche Beteiligungs AG (ETR:DBAN) just released its latest full-year report and things are not looking great. Statutory earnings fell substantially short of expectations, with revenues of €12m missing forecasts by 36%. Losses exploded, with a per-share loss of €1.11 some 155% below prior forecasts. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Deutsche Beteiligungs

After the latest results, the five analysts covering Deutsche Beteiligungs are now predicting revenues of €74.2m in 2021. If met, this would reflect a huge 497% improvement in sales compared to the last 12 months. Deutsche Beteiligungs is also expected to turn profitable, with statutory earnings of €2.72 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €71.2m and earnings per share (EPS) of €2.73 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

The consensus price target increased 8.4% to €41.25, with an improved revenue forecast carrying the promise of a more valuable business, in time. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Deutsche Beteiligungs at €45.40 per share, while the most bearish prices it at €37.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Deutsche Beteiligungs' past performance and to peers in the same industry. One thing stands out from these estimates, which is that Deutsche Beteiligungs is forecast to grow faster in the future than it has in the past, with revenues expected to grow 497%. If achieved, this would be a much better result than the 19% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.4% per year. Not only are Deutsche Beteiligungs' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Deutsche Beteiligungs. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Deutsche Beteiligungs going out to 2023, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Deutsche Beteiligungs that you need to be mindful of.

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This article by Simply Wall St is general in nature. 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.
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