kr90.00 - That's What Analysts Think Enea AB (publ) (STO:ENEA) Is Worth After These Results

Shareholders of Enea AB (publ) (STO:ENEA) will be pleased this week, given that the stock price is up 15% to kr54.00 following its latest quarterly results. It was an okay result overall, with revenues coming in at kr200m, roughly what the analyst had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

Check out our latest analysis for Enea

Taking into account the latest results, the current consensus from Enea's lone analyst is for revenues of kr897.0m in 2024. This would reflect a satisfactory 3.7% increase on its revenue over the past 12 months. Enea is also expected to turn profitable, with statutory earnings of kr4.50 per share. Before this earnings report, the analyst had been forecasting revenues of kr895.0m and earnings per share (EPS) of kr2.34 in 2024. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.

The analyst has been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 13% to kr90.00.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Enea is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.0% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.0% annual decline 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 revenue grow 8.5% per year. So although Enea's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Enea following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It might also be worth considering whether Enea's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.