Earnings Update: Here's Why Analysts Just Lifted Their Infrea AB (STO:INFREA) Price Target To kr15.00

Infrea AB (STO:INFREA) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. The result was fairly weak overall, with revenues of kr531m being 4.8% less than what the analyst had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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Taking into account the latest results, the current consensus from Infrea's lone analyst is for revenues of kr2.31b in 2026. This would reflect a satisfactory 3.4% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 108% to kr1.55. In the lead-up to this report, the analyst had been modelling revenues of kr2.33b and earnings per share (EPS) of kr1.24 in 2026. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

View our latest analysis for Infrea

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 15% to kr15.00.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Infrea's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.7% growth on an annualised basis. This is compared to a historical growth rate of 17% 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 7.2% 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 Infrea.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Infrea's earnings potential next year. 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 analyst clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Infrea. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 3 warning signs for Infrea you should know about.

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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.