Earnings Update: Here's Why Analysts Just Lifted Their NCAB Group AB (publ) (STO:NCAB) Price Target To kr58.50

Shareholders will be ecstatic, with their stake up 21% over the past week following NCAB Group AB (publ)'s (STO:NCAB) latest third-quarter results. The result was positive overall - although revenues of kr949m were in line with what the analysts predicted, NCAB Group surprised by delivering a statutory profit of kr0.33 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from NCAB Group's four analysts is for revenues of kr4.17b in 2026. This would reflect a solid 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 67% to kr1.74. In the lead-up to this report, the analysts had been modelling revenues of kr4.11b and earnings per share (EPS) of kr1.72 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.

Check out our latest analysis for NCAB Group

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.4% to kr58.50. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values NCAB Group at kr64.00 per share, while the most bearish prices it at kr50.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 analysts are definitely expecting NCAB Group's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.4% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NCAB Group 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 NCAB Group going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for NCAB Group that you need to take into consideration.

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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.