AlzChem Group AG (ETR:ACT) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in AlzChem Group AG (ETR:ACT) had a good week, as its shares rose 6.3% to close at €77.80 following the release of its full-year results. AlzChem Group reported €563m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €5.31 beat expectations, being 4.8% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AlzChem Group after the latest results.

View our latest analysis for AlzChem Group

Taking into account the latest results, the most recent consensus for AlzChem Group from five analysts is for revenues of €582.3m in 2025. If met, it would imply an okay 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.1% to €5.65. Before this earnings report, the analysts had been forecasting revenues of €589.9m and earnings per share (EPS) of €5.50 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 5.2% to €80.18, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values AlzChem Group at €89.90 per share, while the most bearish prices it at €72.00. This is a very narrow spread of estimates, implying either that AlzChem Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that AlzChem Group's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 9.7% p.a. growth over the last five years. Compare this to the 18 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while AlzChem Group's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 AlzChem Group following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for AlzChem Group going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for AlzChem Group you should be aware of.

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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.