Lagercrantz Group AB (publ) (STO:LAGR B) Released Earnings Last Week And Analysts Lifted Their Price Target To kr232

Lagercrantz Group AB (publ) (STO:LAGR B) defied analyst predictions to release its quarterly results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 4.5% to hit kr2.5b. Statutory earnings per share (EPS) came in at kr1.30, some 3.2% above whatthe analysts had 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Lagercrantz Group

Taking into account the latest results, the most recent consensus for Lagercrantz Group from five analysts is for revenues of kr10.3b in 2026. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 20% to kr5.56. Before this earnings report, the analysts had been forecasting revenues of kr10.2b and earnings per share (EPS) of kr5.53 in 2026. 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 11% to kr232despite 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. 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. The most optimistic Lagercrantz Group analyst has a price target of kr260 per share, while the most pessimistic values it at kr210. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. It's pretty clear that there is an expectation that Lagercrantz Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% per year. Even after the forecast slowdown in growth, it seems obvious that Lagercrantz Group is also expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

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.

However, before you get too enthused, we've discovered 1 warning sign for Lagercrantz Group that 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.