Analyst Estimates: Here's What Brokers Think Of Amundi SA (EPA:AMUN) After Its Annual Report

It's been a good week for Amundi SA (EPA:AMUN) shareholders, because the company has just released its latest full-year results, and the shares gained 5.2% to €69.95. The result was positive overall - although revenues of €3.2b were in line with what the analysts predicted, Amundi surprised by delivering a statutory profit of €6.75 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Amundi

Taking into account the latest results, the consensus forecast from Amundi's 16 analysts is for revenues of €3.39b in 2022, which would reflect a satisfactory 5.8% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to dip 9.9% to €6.08 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.34b and earnings per share (EPS) of €5.93 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €86.88, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Amundi, with the most bullish analyst valuing it at €92.00 and the most bearish at €78.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. We would highlight that Amundi's revenue growth is expected to slow, with the forecast 5.8% annualised growth rate until the end of 2022 being well below the historical 8.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.6% annually. Even after the forecast slowdown in growth, it seems obvious that Amundi is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amundi's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Amundi going out to 2024, and you can see them free on our platform here.

Even so, be aware that Amundi is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.