Lime Technologies AB (publ) (STO:LIME) Just Reported, And Analysts Assigned A kr332 Price Target

There's been a major selloff in Lime Technologies AB (publ) (STO:LIME) shares in the week since it released its annual report, with the stock down 24% to kr184. The result was positive overall - although revenues of kr747m were in line with what the analysts predicted, Lime Technologies surprised by delivering a statutory profit of kr8.35 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the four analysts covering Lime Technologies are now predicting revenues of kr803.8m in 2026. If met, this would reflect a reasonable 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 14% to kr9.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr826.2m and earnings per share (EPS) of kr9.52 in 2026. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for Lime Technologies

The average price target was reduced 14% to kr332, with the lower revenue forecasts indicating negative sentiment towards Lime Technologies, even though earnings forecasts were unchanged. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Lime Technologies at kr410 per share, while the most bearish prices it at kr250. 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.

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. It's pretty clear that there is an expectation that Lime Technologies' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.8% annually. So it's pretty clear that, while Lime Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Lime Technologies analysts - going out to 2028, and you can see them free on our platform here.

It might also be worth considering whether Lime Technologies' 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.