Earnings Update: Here's Why Analysts Just Lifted Their Seco S.p.A. (BIT:IOT) Price Target To €3.63

Last week, you might have seen that Seco S.p.A. (BIT:IOT) released its quarterly result to the market. The early response was not positive, with shares down 3.7% to €3.23 in the past week. Results were overall in line with expectations, with the company breaking even at the statutory earnings per share (EPS) level on €48m in revenue. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the five analysts covering Seco are now predicting revenues of €230.6m in 2026. If met, this would reflect a huge 21% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €232.6m and earnings per share (EPS) of €0.095 in 2026. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

See our latest analysis for Seco

The average price target rose 10% to €3.63, with the analysts clearly having become more optimistic about Seco'sprospects following these results. 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 Seco, with the most bullish analyst valuing it at €4.60 and the most bearish at €2.80 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Seco's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Seco'shistorical trends, as the 16% annualised revenue growth to the end of 2026 is roughly in line with the 15% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 11% per year. So although Seco is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 Seco from its five analysts out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Seco that you need to take into consideration.

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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.