Banca Generali S.p.A. (BIT:BGN) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Banca Generali S.p.A. (BIT:BGN) shareholders, because the company has just released its latest interim results, and the shares gained 4.2% to €40.38. Results overall were respectable, with statutory earnings of €2.79 per share roughly in line with what the analysts had forecast. Revenues of €494m came in 2.8% ahead of analyst predictions. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Banca Generali

Following last week's earnings report, Banca Generali's eight analysts are forecasting 2024 revenues to be €909.0m, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €871.1m and earnings per share (EPS) of €3.26 in 2024. The thing that stands out most is that, while there's been a small lift in revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

The average price target rose 6.2% to €41.90, with the analysts clearly having become more optimistic about Banca Generali'sprospects following these results. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Banca Generali analyst has a price target of €48.60 per share, while the most pessimistic values it at €38.50. This is a very narrow spread of estimates, implying either that Banca Generali is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Banca Generali's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 7.4% 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 2.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Banca Generali is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

We have estimates for Banca Generali from its eight analysts out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Banca Generali (1 is a bit unpleasant!) that you need to be mindful of.

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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.

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