Truecaller AB (publ) (STO:TRUE B) Released Earnings Last Week And Analysts Lifted Their Price Target To kr82.29

Shareholders of Truecaller AB (publ) (STO:TRUE B) will be pleased this week, given that the stock price is up 15% to kr77.90 following its latest annual results. The result was positive overall - although revenues of kr1.9b were in line with what the analysts predicted, Truecaller surprised by delivering a statutory profit of kr1.51 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 estimates suggest is in store for next year.

See our latest analysis for Truecaller

Following the latest results, Truecaller's seven analysts are now forecasting revenues of kr2.41b in 2025. This would be a major 29% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 36% to kr2.07. In the lead-up to this report, the analysts had been modelling revenues of kr2.36b and earnings per share (EPS) of kr2.00 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to kr82.29per share. 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 Truecaller analyst has a price target of kr98.00 per share, while the most pessimistic values it at kr63.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Truecaller's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 25% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 16% annually. So although Truecaller is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Truecaller following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Simply Wall St, we have a full range of analyst estimates for Truecaller going out to 2027, and you can see them free on our platform here..

We also provide an overview of the Truecaller Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.