Stock Analysis

Here's What Analysts Are Forecasting For Bank Polska Kasa Opieki S.A. (WSE:PEO) After Its Third-Quarter Results

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WSE:PEO

Shareholders of Bank Polska Kasa Opieki S.A. (WSE:PEO) will be pleased this week, given that the stock price is up 11% to zł155 following its latest third-quarter results. Results were roughly in line with estimates, with revenues of zł4.0b and statutory earnings per share of zł25.06. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Bank Polska Kasa Opieki

WSE:PEO Earnings and Revenue Growth November 10th 2024

Following the latest results, Bank Polska Kasa Opieki's nine analysts are now forecasting revenues of zł15.8b in 2025. This would be a credible 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decrease 2.2% to zł23.55 in the same period. In the lead-up to this report, the analysts had been modelling revenues of zł15.7b and earnings per share (EPS) of zł23.34 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of zł194, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Bank Polska Kasa Opieki at zł228 per share, while the most bearish prices it at zł173. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Bank Polska Kasa Opieki's revenue growth is expected to slow, with the forecast 4.8% annualised growth rate until the end of 2025 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) 2.9% per year. So it's pretty clear that, while Bank Polska Kasa Opieki's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at zł194, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Bank Polska Kasa Opieki going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Bank Polska Kasa Opieki has 2 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Valuation is complex, but we're here to simplify it.

Discover if Bank Polska Kasa Opieki might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.