Earnings Release: Here's Why Analysts Cut Their SEB SA (EPA:SK) Price Target To €102

Last week, you might have seen that SEB SA (EPA:SK) released its interim result to the market. The early response was not positive, with shares down 6.0% to €62.50 in the past week. It was a credible result overall, with revenues of €3.7b and statutory earnings per share of €4.23 both in line with analyst estimates, showing that SEB 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, SEB's ten analysts are forecasting 2025 revenues to be €8.41b, approximately in line with the last 12 months. Per-share earnings are expected to surge 160% to €6.30. In the lead-up to this report, the analysts had been modelling revenues of €8.43b and earnings per share (EPS) of €7.93 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

See our latest analysis for SEB

The average price target fell 13% to €102, with reduced earnings forecasts clearly tied to a lower valuation estimate. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SEB analyst has a price target of €115 per share, while the most pessimistic values it at €77.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We can infer from the latest estimates that forecasts expect a continuation of SEB'shistorical trends, as the 3.2% annualised revenue growth to the end of 2025 is roughly in line with the 3.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.2% per year. So it's pretty clear that SEB is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SEB's future valuation.

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 SEB going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the 4 warning signs we've spotted with SEB (including 2 which shouldn't be ignored) .

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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.