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

As you might know, ACEA S.p.A. (BIT:ACE) recently reported its first-quarter numbers. It was a credible result overall, with revenues of €1.1b and statutory earnings per share of €1.56 both in line with analyst estimates, showing that ACEA is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've discovered 1 warning sign about ACEA. View them for free.

Following the latest results, ACEA's three analysts are now forecasting revenues of €4.48b in 2025. This would be a reasonable 6.5% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €1.63, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €4.44b and earnings per share (EPS) of €1.55 in 2025. So the consensus seems to have become somewhat more optimistic on ACEA's earnings potential following these results.

View our latest analysis for ACEA

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.9% to €21.18. 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 ACEA at €22.40 per share, while the most bearish prices it at €20.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that ACEA's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 7.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ACEA is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ACEA's earnings potential next year. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple ACEA analysts - 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 1 warning sign for ACEA 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.