€69.90 - That's What Analysts Think ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) Is Worth After These Results

ACS, Actividades de Construcción y Servicios, S.A. (BME:ACS) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results were roughly in line with estimates, with revenues of €13b and statutory earnings per share of €3.23. 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.

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Following the latest results, ACS Actividades de Construcción y Servicios' 13 analysts are now forecasting revenues of €53.5b in 2026. This would be a meaningful 10.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 12% to €3.85. In the lead-up to this report, the analysts had been modelling revenues of €51.9b and earnings per share (EPS) of €3.77 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for ACS Actividades de Construcción y Servicios

It will come as no surprise to learn that the analysts have increased their price target for ACS Actividades de Construcción y Servicios 8.7% to €69.90on the back of these upgrades. 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. Currently, the most bullish analyst values ACS Actividades de Construcción y Servicios at €85.00 per share, while the most bearish prices it at €50.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await ACS Actividades de Construcción y Servicios shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ACS Actividades de Construcción y Servicios' past performance and to peers in the same industry. We would highlight that ACS Actividades de Construcción y Servicios' revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2026 being well below the historical 10% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% annually. So it's pretty clear that, while ACS Actividades de Construcción y Servicios' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ACS Actividades de Construcción y Servicios' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ACS Actividades de Construcción y Servicios going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for ACS Actividades de Construcción y Servicios (1 is a bit concerning) you should be aware of.

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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.