Rejlers AB (publ) (STO:REJL B) Just Reported, And Analysts Assigned A kr179 Price Target

It's been a good week for Rejlers AB (publ) (STO:REJL B) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.2% to kr138. Results were roughly in line with estimates, with revenues of kr1.1b and statutory earnings per share of kr8.32. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Rejlers

Taking into account the latest results, the consensus forecast from Rejlers' two analysts is for revenues of kr4.38b in 2024. This reflects a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.8% to kr9.79. Before this earnings report, the analysts had been forecasting revenues of kr4.36b and earnings per share (EPS) of kr9.69 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 8.5% to kr179, suggesting that the analysts might have previously been hoping for an earnings upgrade.

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 Rejlers' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.1% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.3% annually. Factoring in the forecast slowdown in growth, it looks like Rejlers 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Rejlers' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Rejlers 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.