kr27.00 - That's What Analysts Think BHG Group AB (publ) (STO:BHG) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 31% over the past week following BHG Group AB (publ)'s (STO:BHG) latest full-year results. Revenues were in line with expectations, at kr10.0b, while statutory losses ballooned to kr3.79 per share. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for BHG Group

After the latest results, the three analysts covering BHG Group are now predicting revenues of kr10.5b in 2025. If met, this would reflect an okay 5.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with BHG Group forecast to report a statutory profit of kr0.79 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr10.3b and earnings per share (EPS) of kr0.68 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 29% to kr27.00. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values BHG Group at kr32.00 per share, while the most bearish prices it at kr22.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of BHG Group'shistorical trends, as the 5.8% annualised revenue growth to the end of 2025 is roughly in line with the 7.3% 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 4.3% per year. So it's pretty clear that BHG Group is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around BHG Group's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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 BHG Group. 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 BHG Group 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 BHG Group , and understanding this should be part of your investment process.

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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.