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

It's been a good week for SeSa S.p.A. (BIT:SES) shareholders, because the company has just released its latest half-yearly results, and the shares gained 6.5% to €111. Results were roughly in line with estimates, with revenues of €889m and statutory earnings per share of €2.45. 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.

View our latest analysis for SeSa

Following the latest results, SeSa's three analysts are now forecasting revenues of €2.03b in 2021. This would be an okay 3.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to rise 7.0% to €3.40. Before this earnings report, the analysts had been forecasting revenues of €2.02b and earnings per share (EPS) of €3.39 in 2021. 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.

The consensus price target rose 6.7% to €128despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of SeSa's earnings by assigning a price premium. 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 SeSa at €130 per share, while the most bearish prices it at €125. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting SeSa is an easy business to forecast or the the analysts are all using similar 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 SeSa's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 10% 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 9.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that SeSa is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will 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.

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 SeSa going out to 2023, 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 1 warning sign for SeSa that you need to be mindful of.

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