Analysts Have Been Trimming Their Kamux Oyj (HEL:KAMUX) Price Target After Its Latest Report

There's been a notable change in appetite for Kamux Oyj (HEL:KAMUX) shares in the week since its second-quarter report, with the stock down 12% to €4.25. Kamux Oyj's revenues suffered a miss, falling 7.1% short of forecasts, at €253m. Statutory earnings per share (EPS) however performed much better, reaching break-even. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Kamux Oyj

Following last week's earnings report, Kamux Oyj's three analysts are forecasting 2024 revenues to be €1.02b, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 14% to €0.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.06b and earnings per share (EPS) of €0.39 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 17% to €5.47, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Kamux Oyj analyst has a price target of €6.70 per share, while the most pessimistic values it at €4.70. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Kamux Oyj's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.4% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kamux Oyj.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kamux Oyj's future valuation.

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 Kamux Oyj going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Kamux Oyj , and understanding these should be part of your investment process.

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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.