Earnings Update: Here's Why Analysts Just Lifted Their Europris ASA (OB:EPR) Price Target To kr86.50

Europris ASA (OB:EPR) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of kr13b arriving 4.5% ahead of forecasts. Statutory earnings per share (EPS) were kr5.16, 4.8% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Europris

Taking into account the latest results, the most recent consensus for Europris from four analysts is for revenues of kr14.6b in 2025. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 7.1% to kr5.49. Before this earnings report, the analysts had been forecasting revenues of kr13.7b and earnings per share (EPS) of kr5.38 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

It will come as no surprise to learn that the analysts have increased their price target for Europris 8.5% to kr86.50on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Europris, with the most bullish analyst valuing it at kr95.00 and the most bearish at kr74.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Europris' past performance and to peers in the same industry. The analysts are definitely expecting Europris' growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Europris 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 Europris' 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Europris analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Europris that you should be aware 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.