Analysts Have Been Trimming Their KlaraBo Sverige AB (publ) (STO:KLARA B) Price Target After Its Latest Report

Investors in KlaraBo Sverige AB (publ) (STO:KLARA B) had a good week, as its shares rose 3.9% to close at kr16.54 following the release of its annual results. Revenues were in line with expectations, at kr590m, while statutory losses ballooned to kr2.91 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for KlaraBo Sverige

After the latest results, the single analyst covering KlaraBo Sverige are now predicting revenues of kr650.0m in 2024. If met, this would reflect a notable 10% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with KlaraBo Sverige forecast to report a statutory profit of kr0.83 per share. In the lead-up to this report, the analyst had been modelling revenues of kr641.0m and earnings per share (EPS) of kr0.68 in 2024. There was no real change to the revenue estimates, but the analyst does seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.

The average the analyst price target fell 9.1% to kr20.00, suggesting thatthe analyst has other concerns, and the improved earnings per share outlook was not enough to allay them.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KlaraBo Sverige's past performance and to peers in the same industry. It's pretty clear that there is an expectation that KlaraBo Sverige's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 36% 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 3.9% annually. So it's pretty clear that, while KlaraBo Sverige's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KlaraBo Sverige following these results. 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 fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of KlaraBo Sverige's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on KlaraBo Sverige. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for KlaraBo Sverige 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.