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

It's been a pretty great week for Sats ASA (OB:SATS) shareholders, with its shares surging 11% to kr31.55 in the week since its latest full-year results. Sats reported kr5.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr1.59 beat expectations, being 3.2% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Sats

Following the latest results, Sats' four analysts are now forecasting revenues of kr5.34b in 2025. This would be a modest 5.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 40% to kr2.24. In the lead-up to this report, the analysts had been modelling revenues of kr5.32b and earnings per share (EPS) of kr2.04 in 2025. So the consensus seems to have become somewhat more optimistic on Sats' earnings potential following these results.

The consensus price target rose 12% to kr33.25, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Sats at kr35.00 per share, while the most bearish prices it at kr30.00. This is a very narrow spread of estimates, implying either that Sats 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. We would highlight that Sats' revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2025 being well below the historical 8.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.8% annually. Factoring in the forecast slowdown in growth, it seems obvious that Sats is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they 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.

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 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Sats that you need to take into consideration.

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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.