Plus500 Ltd. (LON:PLUS) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that Plus500 Ltd. (LON:PLUS) filed its yearly result this time last week. The early response was not positive, with shares down 4.4% to UK£27.02 in the past week. Results were roughly in line with estimates, with revenues of US$763m and statutory earnings per share of US$3.45. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Plus500

Following the recent earnings report, the consensus from four analysts covering Plus500 is for revenues of US$739.6m in 2025. This implies a small 3.0% decline in revenue compared to the last 12 months. Statutory per share are forecast to be US$3.71, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$722.0m and earnings per share (EPS) of US$3.67 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

The consensus price target increased 5.9% to UK£29.90, with an improved revenue forecast carrying the promise of a more valuable business, in time. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Plus500, with the most bullish analyst valuing it at UK£33.02 and the most bearish at UK£26.51 per share. This is a very narrow spread of estimates, implying either that Plus500 is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 3.0% by the end of 2025. This indicates a significant reduction from annual growth of 3.4% 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 4.6% per year. It's pretty clear that Plus500's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also upgraded their revenue estimates, although 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.

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 Plus500 going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Plus500 that you need to be mindful 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.