Lindab International AB (publ) (STO:LIAB) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Lindab International AB (publ) (STO:LIAB) had a good week, as its shares rose 6.4% to close at kr261 following the release of its second-quarter results. It was a credible result overall, with revenues of kr3.5b and statutory earnings per share of kr2.77 both in line with analyst estimates, showing that Lindab International is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Lindab International

After the latest results, the three analysts covering Lindab International are now predicting revenues of kr13.6b in 2024. If met, this would reflect an okay 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.4% to kr10.41. Before this earnings report, the analysts had been forecasting revenues of kr13.7b and earnings per share (EPS) of kr10.50 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 8.0% to kr266despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lindab International's earnings by assigning a price premium. 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 Lindab International at kr300 per share, while the most bearish prices it at kr209. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Lindab International's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2024 being well below the historical 9.3% 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) 5.8% annually. Factoring in the forecast slowdown in growth, it looks like Lindab International is forecast to grow at about the same rate as the wider industry.

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 real changes to revenue forecasts, with the business still expected to 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Lindab International. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Lindab International going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Lindab International , and understanding it should be part of your investment process.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com