ChemoMetec A/S (CPH:CHEMM) Analysts Are Pretty Bullish On The Stock After Recent Results

As you might know, ChemoMetec A/S (CPH:CHEMM) recently reported its half-year numbers. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.4%to hit kr.252m. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for ChemoMetec

Taking into account the latest results, the current consensus from ChemoMetec's three analysts is for revenues of kr.506.4m in 2025. This would reflect a notable 10% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 18% to kr.11.51. Before this earnings report, the analysts had been forecasting revenues of kr.487.9m and earnings per share (EPS) of kr.10.39 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.2% to kr.613per share. 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 ChemoMetec at kr.675 per share, while the most bearish prices it at kr.550. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting ChemoMetec's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ChemoMetec is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ChemoMetec's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider 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.

With that in mind, we wouldn't be too quick to come to a conclusion on ChemoMetec. 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 ChemoMetec going out to 2027, and you can see them free on our platform here..

Even so, be aware that ChemoMetec is showing 1 warning sign in our investment analysis , you should know about...

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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.