Técnicas Reunidas, S.A. (BME:TRE) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a pretty great week for Técnicas Reunidas, S.A. (BME:TRE) shareholders, with its shares surging 13% to €18.10 in the week since its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.8%to hit €1.3b. Following the result, the analysts have 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

We've discovered 1 warning sign about Técnicas Reunidas. View them for free.

After the latest results, the six analysts covering Técnicas Reunidas are now predicting revenues of €5.21b in 2025. If met, this would reflect a decent 9.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 37% to €1.69. In the lead-up to this report, the analysts had been modelling revenues of €5.19b and earnings per share (EPS) of €1.76 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Técnicas Reunidas

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.1% to €19.16, suggesting that these impacts are not expected to weigh on the stock's value in the long term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Técnicas Reunidas at €22.15 per share, while the most bearish prices it at €12.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Técnicas Reunidas' past performance and to peers in the same industry. The analysts are definitely expecting Técnicas Reunidas' growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Técnicas Reunidas is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Técnicas Reunidas analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Técnicas Reunidas 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.