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

Admicom Oyj (HEL:ADMCM) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €70.20 in the week after its latest annual results. Admicom Oyj reported in line with analyst predictions, delivering revenues of €25m and statutory earnings per share of €1.63, suggesting the business is executing well and in line with its plan. 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.

See our latest analysis for Admicom Oyj

Taking into account the latest results, the most recent consensus for Admicom Oyj from three analysts is for revenues of €30.5m in 2022 which, if met, would be a sizeable 22% increase on its sales over the past 12 months. Statutory earnings per share are predicted to step up 18% to €1.90. Before this earnings report, the analysts had been forecasting revenues of €29.6m and earnings per share (EPS) of €1.94 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small increase to to revenue forecasts.

Even though revenue forecasts increased, the consensus price target 10% to €94.00, perhaps suggesting thatthe analysts have become more pessimistic about the lack of earnings growth. 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. There are some variant perceptions on Admicom Oyj, with the most bullish analyst valuing it at €100.00 and the most bearish at €87.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Admicom Oyj's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Admicom Oyj'shistorical trends, as the 22% annualised revenue growth to the end of 2022 is roughly in line with the 26% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So although Admicom Oyj is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Admicom Oyj going out to 2024, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Admicom Oyj that you need to be mindful 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.