Lemonsoft Oyj (HEL:LEMON) Analysts Are Pretty Bullish On The Stock After Recent Results

The quarterly results for Lemonsoft Oyj (HEL:LEMON) were released last week, making it a good time to revisit its performance. The result was fairly weak overall, with revenues of €7.4m being 2.0% less than what the analysts had been modelling. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lemonsoft Oyj after the latest results.

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Taking into account the latest results, the current consensus, from the two analysts covering Lemonsoft Oyj, is for revenues of €30.0m in 2025. This implies a measurable 2.7% reduction in Lemonsoft Oyj's revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €30.6m and earnings per share (EPS) of €0.24 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Check out our latest analysis for Lemonsoft Oyj

Additionally, the consensus price target for Lemonsoft Oyj rose 7.4% to €7.25, showing a clear increase in optimism from the the analysts involved.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lemonsoft Oyj's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 5.4% annualised decline to the end of 2025. That is a notable change from historical growth of 14% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 11% annually for the foreseeable future. It's pretty clear that Lemonsoft Oyj's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Lemonsoft Oyj's two analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Lemonsoft Oyj has 1 warning sign we think 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.