LU-VE S.p.A. (BIT:LUVE) Analysts Are Pretty Bullish On The Stock After Recent Results

Shareholders might have noticed that LU-VE S.p.A. (BIT:LUVE) filed its full-year result this time last week. The early response was not positive, with shares down 2.3% to €14.85 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.9%to hit €401m. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for LU-VE

Taking into account the latest results, the consensus forecast from LU-VE's three analysts is for revenues of €438.4m in 2021, which would reflect a notable 9.2% improvement in sales compared to the last 12 months. Statutory per share are forecast to be €0.80, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €422.0m and earnings per share (EPS) of €0.88 in 2021. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a notable to revenue, the consensus also made a small dip in its earnings per share forecasts.

Curiously, the consensus price target rose 13% to €18.20. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LU-VE at €20.00 per share, while the most bearish prices it at €17.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that LU-VE's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 14% 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 4.9% annually. So it's pretty clear that, while LU-VE's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for LU-VE going out to 2025, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with LU-VE (including 1 which can't be ignored) .

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