Afry AB (STO:AFRY) Just Reported And Analysts Have Been Lifting Their Price Targets

Shareholders of Afry AB (STO:AFRY) will be pleased this week, given that the stock price is up 15% to kr200 following its latest annual results. It was a credible result overall, with revenues of kr27b and statutory earnings per share of kr10.85 both in line with analyst estimates, showing that Afry is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Afry

Taking into account the latest results, the most recent consensus for Afry from seven analysts is for revenues of kr28.1b in 2025. If met, it would imply a modest 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 21% to kr13.18. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr28.2b and earnings per share (EPS) of kr12.89 in 2025. So the consensus seems to have become somewhat more optimistic on Afry's earnings potential following these results.

The consensus price target rose 10% to kr232, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Afry at kr250 per share, while the most bearish prices it at kr210. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Afry is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Afry's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Afry's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Afry is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Afry following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Afry'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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Afry going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Afry that you need to take into consideration.

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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.