€114: That's What Analysts Think Sixt SE (ETR:SIX2) Is Worth After Its Latest Results

It's been a sad week for Sixt SE (ETR:SIX2), who've watched their investment drop 13% to €79.10 in the week since the company reported its first-quarter result. Results overall were respectable, with statutory earnings of €7.14 per share roughly in line with what the analysts had forecast. Revenues of €780m came in 4.6% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sixt

Taking into account the latest results, Sixt's nine analysts currently expect revenues in 2024 to be €3.91b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.83b and earnings per share (EPS) of €7.03 in 2024. The thing that stands out most is that, while there's been a slight bump in revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

Intriguingly,the analysts have cut their price target 11% to €114 showing a clear decline in sentiment around Sixt's valuation. 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 Sixt at €140 per share, while the most bearish prices it at €84.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Sixt's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sixt is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

At least one of Sixt's nine analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Sixt (including 1 which is a bit concerning) .

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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.