Last week, you might have seen that Valeo SE (EPA:FR) released its half-yearly result to the market. The early response was not positive, with shares down 2.4% to €9.78 in the past week. It was not a great result overall. While revenues of €11b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit €0.43 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Valeo after the latest results.
Following last week's earnings report, Valeo's twelve analysts are forecasting 2025 revenues to be €20.7b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €21.1b and earnings per share (EPS) of €1.16 in 2025. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.
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We'd also point out that thatthe analysts have made no major changes to their price target of €11.30. 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 Valeo analyst has a price target of €22.00 per share, while the most pessimistic values it at €8.15. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Valeo's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.3% annualised decline to the end of 2025. That is a notable change from historical growth of 6.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.0% annually for the foreseeable future. It's pretty clear that Valeo's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The clear low-light was that the analysts cut their forecast revenue estimates for Valeo next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
At least one of Valeo's twelve analysts has provided estimates out to 2027, which can be seen for free on our platform here.
It is also worth noting that we have found 4 warning signs for Valeo that you need to take into consideration.
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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.