Analyst Estimates: Here's What Brokers Think Of EBOS Group Limited (NZSE:EBO) After Its Half-Year Report

Last week, you might have seen that EBOS Group Limited (NZSE:EBO) released its half-yearly result to the market. The early response was not positive, with shares down 6.7% to NZ$39.00 in the past week. It was a workmanlike result, with revenues of AU$6.0b coming in 2.8% ahead of expectations, and statutory earnings per share of AU$1.42, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 EBOS Group

Taking into account the latest results, the current consensus, from the twelve analysts covering EBOS Group, is for revenues of AU$12.2b in 2025. This implies a perceptible 3.4% reduction in EBOS Group's revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.9% to AU$1.31. Before this earnings report, the analysts had been forecasting revenues of AU$11.7b and earnings per share (EPS) of AU$1.37 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

There's been no major changes to the price target of NZ$40.56, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EBOS Group, with the most bullish analyst valuing it at NZ$44.85 and the most bearish at NZ$31.50 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EBOS Group's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 6.7% annualised decline to the end of 2025. That is a notable change from historical growth of 10% 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 7.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - EBOS Group is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for EBOS Group. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. The consensus price target held steady at NZ$40.56, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for EBOS Group 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 EBOS Group 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.