€25.83 - That's What Analysts Think AMG Critical Materials N.V. (AMS:AMG) Is Worth After These Results

AMG Critical Materials N.V. (AMS:AMG) shareholders are probably feeling a little disappointed, since its shares fell 6.2% to €24.08 in the week after its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.2%to hit US$439m. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on AMG Critical Materials after the latest results.

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Taking into account the latest results, the most recent consensus for AMG Critical Materials from four analysts is for revenues of US$1.70b in 2025. If met, it would imply a solid 9.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 279% to US$1.23. Before this earnings report, the analysts had been forecasting revenues of US$1.58b and earnings per share (EPS) of US$1.18 in 2025. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

View our latest analysis for AMG Critical Materials

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.2% to €25.83per share. 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. There are some variant perceptions on AMG Critical Materials, with the most bullish analyst valuing it at €30.76 and the most bearish at €20.62 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that AMG Critical Materials' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AMG Critical Materials 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 AMG Critical Materials' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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

You still need to take note of risks, for example - AMG Critical Materials has 3 warning signs (and 1 which is a bit concerning) we think 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.