€22.72 - That's What Analysts Think Carel Industries S.p.A. (BIT:CRL) Is Worth After These Results

Shareholders of Carel Industries S.p.A. (BIT:CRL) will be pleased this week, given that the stock price is up 10% to €25.95 following its latest half-year results. It was a credible result overall, with revenues of €306m and statutory earnings per share of €0.56 both in line with analyst estimates, showing that Carel Industries is executing in line with expectations. 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.

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Taking into account the latest results, the most recent consensus for Carel Industries from five analysts is for revenues of €620.4m in 2025. If met, it would imply a satisfactory 4.6% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be €0.54, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €630.7m and earnings per share (EPS) of €0.53 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Carel Industries

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.2% to €22.72. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Carel Industries, with the most bullish analyst valuing it at €25.50 and the most bearish at €16.90 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that Carel Industries' revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2025 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.5% annually. Even after the forecast slowdown in growth, it seems obvious that Carel Industries is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 Carel Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carel Industries analysts - going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Carel Industries you should know about.

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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.