Earnings Update: Here's Why Analysts Just Lifted Their Wihlborgs Fastigheter AB (publ) (STO:WIHL) Price Target To kr103

It's been a pretty great week for Wihlborgs Fastigheter AB (publ) (STO:WIHL) shareholders, with its shares surging 11% to kr111 in the week since its latest second-quarter results. Results were roughly in line with estimates, with revenues of kr1.0b and statutory earnings per share of kr1.14. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Wihlborgs Fastigheter after the latest results.

See our latest analysis for Wihlborgs Fastigheter

Taking into account the latest results, the most recent consensus for Wihlborgs Fastigheter from five analysts is for revenues of kr4.16b in 2024. If met, it would imply a credible 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 3,316% to kr5.11. Before this earnings report, the analysts had been forecasting revenues of kr4.15b and earnings per share (EPS) of kr5.13 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 5.7% to kr103despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Wihlborgs Fastigheter's earnings by assigning a price premium. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Wihlborgs Fastigheter, with the most bullish analyst valuing it at kr115 and the most bearish at kr82.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wihlborgs Fastigheter's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Wihlborgs Fastigheter'shistorical trends, as the 6.1% annualised revenue growth to the end of 2024 is roughly in line with the 6.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.4% per year. So although Wihlborgs Fastigheter is expected to maintain its revenue growth rate, it's definitely expected to grow faster than 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. 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 in mind, we wouldn't be too quick to come to a conclusion on Wihlborgs Fastigheter. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Wihlborgs Fastigheter going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 4 warning signs for Wihlborgs Fastigheter (1 is a bit concerning!) that you need to take into consideration.

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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.

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