kr15.56 - That's What Analysts Think Storskogen Group AB (publ) (STO:STOR B) Is Worth After These Results

The investors in Storskogen Group AB (publ)'s (STO:STOR B) will be rubbing their hands together with glee today, after the share price leapt 24% to kr15.01 in the week following its annual results. Revenues of kr34b arrived in line with expectations, although statutory losses per share were kr0.03, an impressive 57% smaller than what broker models predicted. 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 Storskogen Group after the latest results.

See our latest analysis for Storskogen Group

Taking into account the latest results, Storskogen Group's five analysts currently expect revenues in 2025 to be kr33.9b, approximately in line with the last 12 months. Earnings are expected to improve, with Storskogen Group forecast to report a statutory profit of kr0.81 per share. In the lead-up to this report, the analysts had been modelling revenues of kr34.6b and earnings per share (EPS) of kr0.85 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to kr15.56, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Storskogen Group analyst has a price target of kr18.00 per share, while the most pessimistic values it at kr12.00. 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.

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 revenue is expected to reverse, with a forecast 0.7% annualised decline to the end of 2025. That is a notable change from historical growth of 32% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Storskogen Group is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Storskogen Group. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Storskogen Group's revenue is expected to 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.

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

It might also be worth considering whether Storskogen Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.