Dalata Hotel Group plc (ISE:DHG) Just Reported And Analysts Have Been Lifting Their Price Targets

Dalata Hotel Group plc (ISE:DHG) last week reported its latest annual results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of €192m arrived in line with expectations, although statutory losses per share were €0.028, an impressive 73% smaller than what broker models predicted. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Dalata Hotel Group

Taking into account the latest results, the current consensus from Dalata Hotel Group's four analysts is for revenues of €405.6m in 2022, which would reflect a substantial 111% increase on its sales over the past 12 months. Earnings are expected to improve, with Dalata Hotel Group forecast to report a statutory profit of €0.057 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €390.6m and earnings per share (EPS) of €0.057 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

The consensus price target increased 6.6% to €4.83, 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 Dalata Hotel Group, with the most bullish analyst valuing it at €4.95 and the most bearish at €4.70 per share. This is a very narrow spread of estimates, implying either that Dalata Hotel Group 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. For example, we noticed that Dalata Hotel Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 111% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 14% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Dalata Hotel Group is expected to grow faster than its competitors, at least for a while.

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. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Dalata Hotel Group going out to 2024, and you can see them free on our platform here..

It might also be worth considering whether Dalata Hotel Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.