Analysts Have Been Trimming Their RVRC Holding AB (publ) (STO:RVRC) Price Target After Its Latest Report

Investors in RVRC Holding AB (publ) (STO:RVRC) had a good week, as its shares rose 2.6% to close at kr47.52 following the release of its full-year results. The result was positive overall - although revenues of kr1.8b were in line with what the analysts predicted, RVRC Holding surprised by delivering a statutory profit of kr2.72 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.

View our latest analysis for RVRC Holding

Taking into account the latest results, the most recent consensus for RVRC Holding from two analysts is for revenues of kr2.07b in 2025. If met, it would imply a notable 12% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 6.6% to kr2.96. Before this earnings report, the analysts had been forecasting revenues of kr2.08b and earnings per share (EPS) of kr3.01 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

With no major changes to earnings forecasts, the consensus price target fell 8.0% to kr63.50, suggesting that the analysts might have previously been hoping for an earnings upgrade.

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 would highlight that RVRC Holding's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% annually. So it's pretty clear that, while RVRC Holding's 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 fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of RVRC Holding's future valuation.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, 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 RVRC Holding 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.