Groupe CRIT SA (EPA:CEN) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a pretty great week for Groupe CRIT SA (EPA:CEN) shareholders, with its shares surging 11% to €73.60 in the week since its latest annual results. It was an okay result overall, with revenues coming in at €1.8b, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are 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 analysts have changed their mind on Groupe CRIT after the latest results.

Check out our latest analysis for Groupe CRIT

Taking into account the latest results, the most recent consensus for Groupe CRIT from three analysts is for revenues of €1.96b in 2021 which, if met, would be a notable 12% increase on its sales over the past 12 months. Statutory earnings per share are forecast to shrink 4.1% to €2.63 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.92b and earnings per share (EPS) of €1.72 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 8.2% to €69.83. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Groupe CRIT, with the most bullish analyst valuing it at €75.30 and the most bearish at €63.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Groupe CRIT's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 0.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Groupe CRIT is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Groupe CRIT'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 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 Groupe CRIT. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Groupe CRIT 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 2 warning signs for Groupe CRIT 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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