kr.620 - That's What Analysts Think Sydbank A/S (CPH:SYDB) Is Worth After These Results

It's been a good week for Sydbank A/S (CPH:SYDB) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.4% to kr.553. It was an okay result overall, with revenues coming in at kr.1.7b, roughly what the analysts had been expecting. 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. 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 consensus forecast from Sydbank's three analysts is for revenues of kr.7.04b in 2026. This reflects a satisfactory 6.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to kr.51.20. In the lead-up to this report, the analysts had been modelling revenues of kr.7.03b and earnings per share (EPS) of kr.51.52 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for Sydbank

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.9% to kr.620. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. There are some variant perceptions on Sydbank, with the most bullish analyst valuing it at kr.670 and the most bearish at kr.570 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Sydbank's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this to the 18 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. Factoring in the forecast slowdown in growth, it looks like Sydbank is forecast to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Sydbank. Long-term earnings power is much more important than next year's profits. We have forecasts for Sydbank going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Sydbank that you need to take into consideration.

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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.