Analyst Estimates: Here's What Brokers Think Of Sidetrade SA (EPA:ALBFR) After Its Half-Yearly Report

Investors in Sidetrade SA (EPA:ALBFR) had a good week, as its shares rose 5.9% to close at €161 following the release of its half-year results. It was an okay result overall, with revenues coming in at €21m, 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Sidetrade

After the latest results, the three analysts covering Sidetrade are now predicting revenues of €43.7m in 2023. If met, this would reflect a decent 8.1% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €43.5m and earnings per share (EPS) of €2.84 in 2023. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €189. 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. There are some variant perceptions on Sidetrade, with the most bullish analyst valuing it at €195 and the most bearish at €185 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Sidetrade's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 13% 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 8.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sidetrade to grow faster than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €189, with the latest estimates not enough to have an impact on their price targets.

At least one of Sidetrade's three analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Sidetrade .

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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.