Nayax Ltd. (TLV:NYAX) Just Reported And Analysts Have Been Lifting Their Price Targets

Nayax Ltd. (TLV:NYAX) shareholders are probably feeling a little disappointed, since its shares fell 4.0% to ₪130 in the week after its latest full-year results. Revenue hit US$314m in line with forecasts, although the company reported a statutory loss per share of US$0.16 that was somewhat smaller than the analysts expected. 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 Nayax after the latest results.

View our latest analysis for Nayax

Taking into account the latest results, the current consensus from Nayax's six analysts is for revenues of US$410.6m in 2025. This would reflect a major 31% increase on its revenue over the past 12 months. Earnings are expected to improve, with Nayax forecast to report a statutory profit of US$0.60 per share. In the lead-up to this report, the analysts had been modelling revenues of US$410.6m and earnings per share (EPS) of US$0.52 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

The consensus price target rose 5.7% to ₪140, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. Currently, the most bullish analyst values Nayax at ₪157 per share, while the most bearish prices it at ₪126. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We can infer from the latest estimates that forecasts expect a continuation of Nayax'shistorical trends, as the 31% annualised revenue growth to the end of 2025 is roughly in line with the 31% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 14% annually. So it's pretty clear that Nayax is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nayax following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Nayax. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nayax analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Nayax's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.