kr165 - That's What Analysts Think Alligo AB (publ) (STO:ALLIGO B) Is Worth After These Results

It's been a pretty great week for Alligo AB (publ) (STO:ALLIGO B) shareholders, with its shares surging 14% to kr152 in the week since its latest annual results. Revenues of kr9.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr9.76, missing estimates by 2.5%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Alligo after the latest results.

Check out our latest analysis for Alligo

Taking into account the latest results, the most recent consensus for Alligo from two analysts is for revenues of kr9.67b in 2024. If met, it would imply an okay 3.6% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 9.7% to kr10.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr9.74b and earnings per share (EPS) of kr11.56 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Despite cutting their earnings forecasts,the analysts have lifted their price target 20% to kr165, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Alligo's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Alligo.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Alligo .

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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.