Analysts Have Been Trimming Their Kjell Group AB (publ) (STO:KJELL) Price Target After Its Latest Report

There's been a notable change in appetite for Kjell Group AB (publ) (STO:KJELL) shares in the week since its third-quarter report, with the stock down 13% to kr16.10. Revenues came in 3.1% below expectations, at kr624m. Statutory earnings per share were relatively better off, with a per-share profit of kr0.40 being roughly in line with analyst estimates. 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.

Check out our latest analysis for Kjell Group

Taking into account the latest results, the current consensus from Kjell Group's dual analysts is for revenues of kr2.82b in 2025. This would reflect a solid 9.7% increase on its revenue over the past 12 months. Earnings are expected to improve, with Kjell Group forecast to report a statutory profit of kr1.67 per share. In the lead-up to this report, the analysts had been modelling revenues of kr2.84b and earnings per share (EPS) of kr1.91 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

It might be a surprise to learn that the consensus price target fell 13% to kr20.00, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

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 can infer from the latest estimates that forecasts expect a continuation of Kjell Group'shistorical trends, as the 7.7% annualised revenue growth to the end of 2025 is roughly in line with the 6.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.3% annually. So although Kjell Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kjell Group. 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 analysts seemingly not reassured by the latest results, leading to a lower estimate of Kjell Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Kjell Group (including 1 which can't be ignored) .

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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.