Earnings Update: Here's Why Analysts Just Lifted Their Plastiques du Val de Loire (EPA:PVL) Price Target To €3.30

It's been a pretty great week for Plastiques du Val de Loire (EPA:PVL) shareholders, with its shares surging 14% to €3.03 in the week since its latest full-year results. It was an okay result overall, with revenues coming in at €834m, roughly what the analysts had been expecting. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Plastiques du Val de Loire

Taking into account the latest results, Plastiques du Val de Loire's twin analysts currently expect revenues in 2024 to be €827.8m, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €854.6m and earnings per share (EPS) of €0.34 in 2024. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

The average price target rose 13% to €3.30, with the analysts clearly having become more optimistic about Plastiques du Val de Loire'sprospects following these results.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.8% by the end of 2024. This indicates a significant reduction from annual growth of 2.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.9% annually for the foreseeable future. It's pretty clear that Plastiques du Val de Loire's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Plastiques du Val de Loire next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

At least one of Plastiques du Val de Loire's twin analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Plastiques du Val de Loire (1 is concerning) you should be aware of.

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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.