Prysmian S.p.A. (BIT:PRY) Just Reported Half-Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Investors in Prysmian S.p.A. (BIT:PRY) had a good week, as its shares rose 5.1% to close at €69.00 following the release of its half-year results. It looks like the results were a bit of a negative overall. While revenues of €9.7b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.4% to hit €0.95 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, the current consensus from Prysmian's 17 analysts is for revenues of €19.4b in 2025. This would reflect a modest 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 32% to €3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of €19.4b and earnings per share (EPS) of €3.35 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for Prysmian

There's been no major changes to the consensus price target of €70.69, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Prysmian at €102 per share, while the most bearish prices it at €35.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Prysmian's past performance and to peers in the same industry. We would highlight that Prysmian's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2025 being well below the historical 11% 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% per year. Factoring in the forecast slowdown in growth, it seems obvious that Prysmian is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Prysmian's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Prysmian's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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

You still need to take note of risks, for example - Prysmian has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.