Analyst Estimates: Here's What Brokers Think Of Gränges AB (publ) (STO:GRNG) After Its Third-Quarter Report

It's been a good week for Gränges AB (publ) (STO:GRNG) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.1% to kr125. The result was positive overall - although revenues of kr5.8b were in line with what the analysts predicted, Gränges surprised by delivering a statutory profit of kr2.67 per share, modestly greater than expected. 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.

See our latest analysis for Gränges

Following the latest results, Gränges' three analysts are now forecasting revenues of kr25.6b in 2025. This would be a meaningful 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 44% to kr12.76. In the lead-up to this report, the analysts had been modelling revenues of kr25.6b and earnings per share (EPS) of kr12.68 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr156. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Gränges at kr184 per share, while the most bearish prices it at kr125. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Gränges' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% per year. So it's pretty clear that, while Gränges' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. The consensus price target held steady at kr156, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Gränges. Long-term earnings power is much more important than next year's profits. We have forecasts for Gränges going out to 2026, and you can see them free on our platform here.

Even so, be aware that Gränges is showing 1 warning sign in our investment analysis , you should know about...

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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.