Sats ASA (OB:SATS) Just Reported And Analysts Have Been Lifting Their Price Targets

It's been a good week for Sats ASA (OB:SATS) shareholders, because the company has just released its latest full-year results, and the shares gained 2.8% to kr18.34. Results were roughly in line with estimates, with revenues of kr4.7b and statutory earnings per share of kr1.10. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Sats

Taking into account the latest results, the current consensus from Sats' three analysts is for revenues of kr5.02b in 2024. This would reflect a satisfactory 6.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 36% to kr1.49. In the lead-up to this report, the analysts had been modelling revenues of kr4.95b and earnings per share (EPS) of kr1.38 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 19% to kr23.00. 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. Currently, the most bullish analyst values Sats at kr25.00 per share, while the most bearish prices it at kr21.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Sats' growth to accelerate, with the forecast 6.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 8.3% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Sats is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sats following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sats' revenue is expected to 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sats going out to 2026, 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 Sats 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.