Analysts Have Been Trimming Their ikeGPS Group Limited (NZSE:IKE) Price Target After Its Latest Report

It's been a good week for ikeGPS Group Limited (NZSE:IKE) shareholders, because the company has just released its latest full-year results, and the shares gained 2.1% to NZ$0.97. It was a pretty bad result overall; while revenues were in line with expectations at NZ$25m, statutory losses exploded to NZ$0.10 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the consensus forecast from ikeGPS Group's three analysts is for revenues of NZ$30.7m in 2026. This reflects a huge 22% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 65% to NZ$0.036. Before this earnings announcement, the analysts had been modelling revenues of NZ$30.5m and losses of NZ$0.035 per share in 2026. So it's pretty clear consensus is mixed on ikeGPS Group after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a pronounced increase to per-share loss expectations.

View our latest analysis for ikeGPS Group

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 7.4% to NZ$0.99, with the analysts signalling that growing losses would be a definite concern. 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. Currently, the most bullish analyst values ikeGPS Group at NZ$1.10 per share, while the most bearish prices it at NZ$0.89. 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.

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 can infer from the latest estimates that forecasts expect a continuation of ikeGPS Group'shistorical trends, as the 22% annualised revenue growth to the end of 2026 is roughly in line with the 21% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 18% per year. It's clear that while ikeGPS Group's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at ikeGPS Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of ikeGPS Group's future valuation.

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 ikeGPS Group going out to 2028, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for ikeGPS Group that we have uncovered.

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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.