Here's What Analysts Are Forecasting For Boliden AB (publ) (STO:BOL) After Its Annual Results

Boliden AB (publ) (STO:BOL) shareholders are probably feeling a little disappointed, since its shares fell 2.3% to kr357 in the week after its latest full-year results. It was a workmanlike result, with revenues of kr89b coming in 2.1% ahead of expectations, and statutory earnings per share of kr36.65, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

After the latest results, the 13 analysts covering Boliden are now predicting revenues of kr93.2b in 2025. If met, this would reflect a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 22% to kr28.76 in the same period. In the lead-up to this report, the analysts had been modelling revenues of kr92.7b and earnings per share (EPS) of kr28.22 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.

View our latest analysis for Boliden

The analysts reconfirmed their price target of kr353, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Boliden analyst has a price target of kr500 per share, while the most pessimistic values it at kr260. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Boliden's revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this to the 19 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.9% per year. So it's pretty clear that, while Boliden's revenue growth is expected to slow, it's expected to grow roughly in line with the 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Boliden analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Boliden , and understanding it should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.