Analysts Have Made A Financial Statement On Recordati Industria Chimica e Farmaceutica S.p.A.'s (BIT:REC) Third-Quarter Report

It's been a good week for Recordati Industria Chimica e Farmaceutica S.p.A. (BIT:REC) shareholders, because the company has just released its latest third-quarter results, and the shares gained 6.2% to €52.80. Recordati Industria Chimica e Farmaceutica reported in line with analyst predictions, delivering revenues of €632m and statutory earnings per share of €0.53, suggesting the business is executing well and in line with its plan. 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 Recordati Industria Chimica e Farmaceutica from nine analysts is for revenues of €2.81b in 2026. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 36% to €2.67. In the lead-up to this report, the analysts had been modelling revenues of €2.82b and earnings per share (EPS) of €2.72 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Recordati Industria Chimica e Farmaceutica

The analysts reconfirmed their price target of €60.32, showing that the business is executing well and in line with expectations. 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 Recordati Industria Chimica e Farmaceutica at €73.00 per share, while the most bearish prices it at €50.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Recordati Industria Chimica e Farmaceutica's revenue growth is expected to slow, with the forecast 8.1% annualised growth rate until the end of 2026 being well below the historical 12% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% per year. So it's pretty clear that, while Recordati Industria Chimica e Farmaceutica'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 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Recordati Industria Chimica e Farmaceutica 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 3 warning signs for Recordati Industria Chimica e Farmaceutica (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.