Earnings Release: Here's Why Analysts Cut Their Laurent-Perrier S.A. (EPA:LPE) Price Target To €107

Investors in Laurent-Perrier S.A. (EPA:LPE) had a good week, as its shares rose 3.7% to close at €96.00 following the release of its interim results. Laurent-Perrier reported in line with analyst predictions, delivering revenues of €134m and statutory earnings per share of €8.02, suggesting the business is executing well and in line with its plan. 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 Laurent-Perrier after the latest results.

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Taking into account the latest results, Laurent-Perrier's three analysts currently expect revenues in 2026 to be €294.7m, approximately in line with the last 12 months. Statutory per share are forecast to be €7.80, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €306.2m and earnings per share (EPS) of €9.15 in 2026. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers.

See our latest analysis for Laurent-Perrier

It'll come as no surprise then, to learn that the analysts have cut their price target 5.3% to €107. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Laurent-Perrier at €121 per share, while the most bearish prices it at €92.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.1% by the end of 2026. This indicates a significant reduction from annual growth of 5.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.5% per year. It's pretty clear that Laurent-Perrier's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Laurent-Perrier. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Laurent-Perrier. 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 Laurent-Perrier going out to 2028, and you can see them free on our platform here..

You can also view our analysis of Laurent-Perrier's balance sheet, and whether we think Laurent-Perrier is carrying too much debt, for free on our platform here.

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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.