Analyst Estimates: Here's What Brokers Think Of Nolato AB (publ) (STO:NOLA B) After Its Full-Year Report

Shareholders of Nolato AB (publ) (STO:NOLA B) will be pleased this week, given that the stock price is up 13% to kr64.30 following its latest annual results. It was a credible result overall, with revenues of kr9.7b and statutory earnings per share of kr2.44 both in line with analyst estimates, showing that Nolato 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Nolato

Taking into account the latest results, the most recent consensus for Nolato from five analysts is for revenues of kr10.2b in 2025. If met, it would imply a credible 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 19% to kr2.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr10.1b and earnings per share (EPS) of kr2.85 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr62.80. 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. The most optimistic Nolato analyst has a price target of kr65.00 per share, while the most pessimistic values it at kr60.00. 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. It's clear from the latest estimates that Nolato's rate of growth is expected to accelerate meaningfully, with the forecast 5.9% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Nolato is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Nolato's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr62.80, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Nolato. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Nolato analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Nolato that you should be aware of.

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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.