Lagercrantz Group AB (publ) (STO:LAGR B) Released Earnings Last Week And Analysts Lifted Their Price Target To kr165

It's been a good week for Lagercrantz Group AB (publ) (STO:LAGR B) shareholders, because the company has just released its latest full-year results, and the shares gained 3.4% to kr175. It looks like the results were a bit of a negative overall. While revenues of kr8.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.2% to hit kr4.25 per share. 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.

See our latest analysis for Lagercrantz Group

After the latest results, the four analysts covering Lagercrantz Group are now predicting revenues of kr9.29b in 2025. If met, this would reflect a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 17% to kr5.00. In the lead-up to this report, the analysts had been modelling revenues of kr9.11b and earnings per share (EPS) of kr5.03 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.

The consensus price target rose 7.3% to kr165despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lagercrantz Group's 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. Currently, the most bullish analyst values Lagercrantz Group at kr180 per share, while the most bearish prices it at kr142. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Lagercrantz Group is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.0% annually. So it's pretty clear that Lagercrantz Group is forecast to grow substantially faster than its industry.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected 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.

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 forecasts for Lagercrantz Group going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Lagercrantz Group that you need to be mindful 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.