Here's What Analysts Are Forecasting For ACEA S.p.A. (BIT:ACE) After Its Half-Yearly Results

It's been a good week for ACEA S.p.A. (BIT:ACE) shareholders, because the company has just released its latest half-year results, and the shares gained 3.4% to €16.41. It was a credible result overall, with revenues of €2.0b and statutory earnings per share of €1.38 both in line with analyst estimates, showing that ACEA is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ACEA after the latest results.

See our latest analysis for ACEA

Following the latest results, ACEA's four analysts are now forecasting revenues of €4.50b in 2024. This would be an okay 6.4% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 2.2% to €1.49 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €4.53b and earnings per share (EPS) of €1.49 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €18.28. 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 ACEA analyst has a price target of €19.00 per share, while the most pessimistic values it at €17.00. This is a very narrow spread of estimates, implying either that ACEA is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting ACEA's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €18.28, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for ACEA going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 2 warning signs we've spotted with ACEA (including 1 which is a bit unpleasant) .

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com