Lime Technologies AB (publ) (STO:LIME) Released Earnings Last Week And Analysts Lifted Their Price Target To kr387

It's been a pretty great week for Lime Technologies AB (publ) (STO:LIME) shareholders, with its shares surging 15% to kr378 in the week since its latest yearly results. Revenues of kr687m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr6.66, missing estimates by 2.5%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Lime Technologies

Taking into account the latest results, the current consensus from Lime Technologies' four analysts is for revenues of kr790.2m in 2025. This would reflect a solid 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 37% to kr9.19. In the lead-up to this report, the analysts had been modelling revenues of kr781.9m and earnings per share (EPS) of kr9.28 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.

The consensus price target rose 7.4% to kr387despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lime Technologies' earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Lime Technologies analyst has a price target of kr418 per share, while the most pessimistic values it at kr345. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Lime Technologies is an easy business to forecast or the the analysts are all using similar assumptions.

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. We can infer from the latest estimates that forecasts expect a continuation of Lime Technologies'historical trends, as the 15% annualised revenue growth to the end of 2025 is roughly in line with the 17% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 15% per year. It's clear that while Lime Technologies' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. We have estimates - from multiple Lime Technologies analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Lime Technologies 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.