Jacquet Metals SA (EPA:JCQ) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a good week for Jacquet Metals SA (EPA:JCQ) shareholders, because the company has just released its latest annual results, and the shares gained 5.6% to €19.00. It was an okay report, and revenues came in at €1.4b, approximately in line with analyst estimates leading up to the results announcement. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Jacquet Metals

Following the latest results, Jacquet Metals' five analysts are now forecasting revenues of €1.50b in 2021. This would be a meaningful 10% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Jacquet Metals forecast to report a statutory profit of €0.78 per share. Before this earnings report, the analysts had been forecasting revenues of €1.50b and earnings per share (EPS) of €0.71 in 2021. So the consensus seems to have become somewhat more optimistic on Jacquet Metals' earnings potential following these results.

The consensus price target rose 10% to €18.90, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Jacquet Metals at €22.00 per share, while the most bearish prices it at €13.00. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Jacquet Metals' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 10% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 0.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.5% per year. So it looks like Jacquet Metals is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Jacquet Metals following these results. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Simply Wall St, we have a full range of analyst estimates for Jacquet Metals going out to 2025, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with Jacquet Metals (including 1 which can't be ignored) .

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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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