€139: That's What Analysts Think SeSa S.p.A. (BIT:SES) Is Worth After Its Latest Results

Shareholders of SeSa S.p.A. (BIT:SES) will be pleased this week, given that the stock price is up 12% to €77.85 following its latest quarterly results. Revenues came in 2.3% below expectations, at €651m. Statutory earnings per share were relatively better off, with a per-share profit of €5.05 being roughly in line with analyst estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for SeSa

Taking into account the latest results, the most recent consensus for SeSa from four analysts is for revenues of €3.40b in 2025. If met, it would imply a reasonable 5.6% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 9.5% to €4.67. In the lead-up to this report, the analysts had been modelling revenues of €3.33b and earnings per share (EPS) of €4.86 in 2025. So it's pretty clear consensus is mixed on SeSa after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The analysts also cut SeSa's price target 9.2% to €139, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in revenue. 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. The most optimistic SeSa analyst has a price target of €180 per share, while the most pessimistic values it at €85.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 can infer from the latest estimates that forecasts expect a continuation of SeSa'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 14% 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 8.5% per year. So it's pretty clear that SeSa is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SeSa's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on SeSa. Long-term earnings power is much more important than next year's profits. We have forecasts for SeSa going out to 2027, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for SeSa you should know about.

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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.