adesso SE (ETR:ADN1) Just Reported, And Analysts Assigned A €122 Price Target

The investors in adesso SE's (ETR:ADN1) will be rubbing their hands together with glee today, after the share price leapt 23% to €86.20 in the week following its third-quarter results. adesso reported in line with analyst predictions, delivering revenues of €330m and statutory earnings per share of €0.49, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for adesso

Taking into account the latest results, the most recent consensus for adesso from six analysts is for revenues of €1.47b in 2025. If met, it would imply a decent 15% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 472% to €4.03. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.47b and earnings per share (EPS) of €5.55 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The average price target fell 8.1% to €122, with reduced earnings forecasts clearly tied to a lower valuation estimate. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic adesso analyst has a price target of €160 per share, while the most pessimistic values it at €75.00. 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. We would highlight that adesso's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.7% per year. So it's pretty clear that, while adesso's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for adesso going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for adesso (1 doesn't sit too well with us!) that we have uncovered.

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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.