€48.03: That's What Analysts Think Infotel SA (EPA:INF) Is Worth After Its Latest Results

It's been a good week for Infotel SA (EPA:INF) shareholders, because the company has just released its latest half-yearly results, and the shares gained 2.9% to €42.90. Results look mixed - while revenue fell marginally short of analyst estimates at €149m, statutory earnings were in line with expectations, at €2.61 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Infotel after the latest results.

View our latest analysis for Infotel

Taking into account the latest results, Infotel's four analysts currently expect revenues in 2024 to be €303.3m, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €304.3m and earnings per share (EPS) of €2.59 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

Intriguingly,the analysts have cut their price target 10% to €48.03 showing a clear decline in sentiment around Infotel's valuation. 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. Currently, the most bullish analyst values Infotel at €55.00 per share, while the most bearish prices it at €44.30. 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.

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. It's pretty clear that there is an expectation that Infotel's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.4% growth on an annualised basis. This is compared to a historical growth rate of 6.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that Infotel is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Infotel's revenue is expected to 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 Infotel's future valuation.

We have estimates for Infotel from its four analysts out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Infotel has 1 warning sign we think 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.