€27.00 - That's What Analysts Think Incap Oyj (HEL:ICP1V) Is Worth After These Results

It's been a good week for Incap Oyj (HEL:ICP1V) shareholders, because the company has just released its latest full-year results, and the shares gained 5.3% to €24.00. The results were positive, with revenue coming in at €108m, beating analyst expectations by 2.4%. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Incap Oyj after the latest results.

Check out our latest analysis for Incap Oyj

Taking into account the latest results, the most recent consensus for Incap Oyj from solitary analyst is for revenues of €118.0m in 2021 which, if met, would be a solid 9.7% increase on its sales over the past 12 months. Statutory per share are forecast to be €2.00, approximately in line with the last 12 months. Before this earnings report, the analyst had been forecasting revenues of €117.0m and earnings per share (EPS) of €1.67 in 2021. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.

The consensus price target rose 35% to €27.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Incap Oyj's revenue growth will slow down substantially, with revenues next year expected to grow 9.7%, compared to a historical growth rate of 23% 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 5.9% next year. Even after the forecast slowdown in growth, it seems obvious that Incap Oyj is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Incap Oyj's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Incap Oyj (1 is a bit concerning!) that you need to be mindful of.

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This article by Simply Wall St is general in nature. 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.
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