€34.75 - That's What Analysts Think Manitou BF SA (EPA:MTU) Is Worth After These Results

Shareholders of Manitou BF SA (EPA:MTU) will be pleased this week, given that the stock price is up 14% to €29.55 following its latest half-year results. It was a credible result overall, with revenues of €970m and statutory earnings per share of €1.03 both in line with analyst estimates, showing that Manitou BF is executing in line with expectations. 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 Manitou BF after the latest results.

See our latest analysis for Manitou BF

Taking into account the latest results, the most recent consensus for Manitou BF from six analysts is for revenues of €1.92b in 2021 which, if met, would be a reasonable 7.0% increase on its sales over the past 12 months. Statutory earnings per share are forecast to dip 4.1% to €2.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.84b and earnings per share (EPS) of €1.78 in 2021. So it seems there's been a definite increase in optimism about Manitou BF's future following the latest results, with a very substantial lift in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Manitou BF 7.6% to €34.75on the back of these upgrades. 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 Manitou BF, with the most bullish analyst valuing it at €38.60 and the most bearish at €29.90 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that Manitou BF's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 6.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Manitou BF is expected to grow at about the same rate as the wider industry.

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 Manitou BF following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Manitou BF will grow in line with the overall 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Manitou BF. Long-term earnings power is much more important than next year's profits. We have forecasts for Manitou BF going out to 2023, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Manitou BF you should know about.

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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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