zł14.97 - That's What Analysts Think Bank Millennium S.A. (WSE:MIL) Is Worth After These Results

Investors in Bank Millennium S.A. (WSE:MIL) had a good week, as its shares rose 7.0% to close at zł16.29 following the release of its third-quarter results. Results were roughly in line with estimates, with revenues of zł1.7b and statutory earnings per share of zł0.59. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, Bank Millennium's five analysts are now forecasting revenues of zł6.92b in 2026. This would be a satisfactory 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 91% to zł1.62. In the lead-up to this report, the analysts had been modelling revenues of zł6.77b and earnings per share (EPS) of zł1.58 in 2026. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

See our latest analysis for Bank Millennium

With these upgrades, we're not surprised to see that the analysts have lifted their price target 9.6% to zł14.97per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Bank Millennium at zł16.50 per share, while the most bearish prices it at zł13.70. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Bank Millennium's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2026 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.8% annually. So it's pretty clear that, while Bank Millennium's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Bank Millennium's earnings potential next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Bank Millennium will grow in line with the overall 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Bank Millennium 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 Bank Millennium 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.