Cheffelo AB (publ) (STO:CHEF) Released Earnings Last Week And Analysts Lifted Their Price Target To kr32.50

Investors in Cheffelo AB (publ) (STO:CHEF) had a good week, as its shares rose 8.0% to close at kr28.40 following the release of its second-quarter results. It was a workmanlike result, with revenues of kr257m coming in 4.2% ahead of expectations, and statutory earnings per share of kr1.08, in line with analyst appraisals. 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 Cheffelo

Taking into account the latest results, the most recent consensus for Cheffelo from twin analysts is for revenues of kr1.06b in 2024. If met, it would imply a modest 2.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 4.4% to kr1.97. Before this earnings report, the analysts had been forecasting revenues of kr1.05b and earnings per share (EPS) of kr1.98 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 18% to kr32.50despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Cheffelo's earnings by assigning a price premium.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Cheffelo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.9% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 14% a year over the past three years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.0% annually. So it looks like Cheffelo is expected to grow faster than its competitors, at least for a while.

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 major changes to revenue forecasts, with the business still expected to grow faster 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 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.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Cheffelo 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.