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

It's been a good week for RVRC Holding AB (publ) (STO:RVRC) shareholders, because the company has just released its latest full-year results, and the shares gained 7.6% to kr47.06. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for RVRC Holding

Taking into account the latest results, the current consensus from RVRC Holding's two analysts is for revenues of kr2.12b in 2025. This would reflect a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to kr3.06. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.14b and earnings per share (EPS) of kr3.05 in 2025. 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.

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.

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 would highlight that RVRC Holding's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2025 being well below the historical 27% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.1% per year. Even after the forecast slowdown in growth, it seems obvious that RVRC Holding is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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.

You still need to take note of risks, for example - RVRC Holding has 1 warning sign we think you should be aware of.

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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.