Banca Generali S.p.A. (BIT:BGN) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Banca Generali S.p.A. (BIT:BGN) had a good week, as its shares rose 4.9% to close at €52.15 following the release of its annual results. The results were positive, with revenue coming in at €982m, beating analyst expectations by 3.2%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Banca Generali

Taking into account the latest results, the current consensus, from the five analysts covering Banca Generali, is for revenues of €917.8m in 2025. This implies a measurable 6.5% reduction in Banca Generali's revenue over the past 12 months. Statutory earnings per share are expected to fall 13% to €3.29 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €888.9m and earnings per share (EPS) of €3.23 in 2025. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a slight bump in to revenue forecasts.

The consensus price target increased 10% to €49.29, with an improved revenue forecast carrying the promise of a more valuable business, in time. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Banca Generali, with the most bullish analyst valuing it at €56.00 and the most bearish at €43.80 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 6.5% annualised decline to the end of 2025. That is a notable change from historical growth of 8.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.4% per year. It's pretty clear that Banca Generali's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Banca Generali going out to 2027, 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 potentially serious!) 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.