Reply S.p.A. (BIT:REY) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Reply S.p.A. (BIT:REY) shareholders, because the company has just released its latest full-year results, and the shares gained 3.4% to €132. It was an okay result overall, with revenues coming in at €2.1b, roughly what the analysts had been expecting. 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.

See our latest analysis for Reply

Taking into account the latest results, the current consensus from Reply's eight analysts is for revenues of €2.29b in 2024. This would reflect an okay 7.9% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €2.33b and earnings per share (EPS) of €5.62 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target rose 6.9% to €133, with the analysts clearly having become more optimistic about Reply'sprospects following these results. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Reply at €150 per share, while the most bearish prices it at €114. This is a very narrow spread of estimates, implying either that Reply is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Reply's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Reply.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Reply's revenue is expected to perform worse 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.

At least one of Reply's eight analysts has provided estimates out to 2026, which can be seen for free on our platform here.

You can also see our analysis of Reply's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.