kr.10.00 - That's What Analysts Think Penneo A/S (CPH:PENNEO) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 23% over the past week following Penneo A/S's (CPH:PENNEO) latest second-quarter results. It was a moderately negative result overall - revenue fell 3.5% short of analyst estimates at kr.24m, and statutory losses were in line with analyst expectations, at kr.0.11 per share. Following the result, the analyst has 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Penneo

Taking into account the latest results, the current consensus from Penneo's sole analyst is for revenues of kr.107.8m in 2024. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Losses are predicted to fall substantially, shrinking 40% to kr.0.34. Before this latest report, the consensus had been expecting revenues of kr.108.3m and kr.0.35 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

These new estimates led to the consensus price target rising 11% to kr.10.00, with lower forecast losses suggesting things could be looking up for Penneo.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Penneo's past performance and to peers in the same industry. It's clear from the latest estimates that Penneo's rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 24% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Penneo to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their loss per share estimates for next year. 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. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for Penneo 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.