Analysts Have Been Trimming Their Lindsay Corporation (NYSE:LNN) Price Target After Its Latest Report

It's been a mediocre week for Lindsay Corporation (NYSE:LNN) shareholders, with the stock dropping 11% to US$114 in the week since its latest annual results. It was a credible result overall, with revenues of US$676m and statutory earnings per share of US$6.78 both in line with analyst estimates, showing that Lindsay is executing in line with expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lindsay after the latest results.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Taking into account the latest results, the four analysts covering Lindsay provided consensus estimates of US$659.8m revenue in 2026, which would reflect a small 2.4% decline over the past 12 months. Statutory earnings per share are forecast to fall 11% to US$6.09 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$662.7m and earnings per share (EPS) of US$6.21 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Lindsay

It might be a surprise to learn that the consensus price target fell 11% to US$127, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Lindsay analyst has a price target of US$132 per share, while the most pessimistic values it at US$122. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 would highlight that revenue is expected to reverse, with a forecast 2.4% annualised decline to the end of 2026. That is a notable change from historical growth of 4.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.2% annually for the foreseeable future. It's pretty clear that Lindsay's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Lindsay going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Lindsay that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.