Napatech A/S (OB:NAPA) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Napatech A/S (OB:NAPA) had a good week, as its shares rose 3.9% to close at kr18.50 following the release of its full-year results. It was an okay result overall, with revenues coming in at kr.183m, roughly what the analyst had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

See our latest analysis for Napatech

Following the recent earnings report, the consensus from sole analyst covering Napatech is for revenues of kr.176.0m in 2024. This implies a small 3.7% decline in revenue compared to the last 12 months. Before this latest report, the consensus had been expecting revenues of kr.231.0m and kr.0.19 per share in losses. So we can see that while the consensus made a large cut to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenues after the latest results.

The average price target rose 50% to kr20.01, with the analyst clearly having become more optimistic about Napatech'sprospects following these results.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Napatech's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 3.7% annualised decline to the end of 2024. That is a notable change from historical growth of 2.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Napatech is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analyst cut their forecast revenue estimates for Napatech next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

We have estimates for Napatech from one covering analyst, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Napatech 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.