Ranpak Holdings Corp. (NYSE:PACK) Released Earnings Last Week And Analysts Lifted Their Price Target To US$11.17

Last week, you might have seen that Ranpak Holdings Corp. (NYSE:PACK) released its annual result to the market. The early response was not positive, with shares down 7.3% to US$6.20 in the past week. Revenues were in line with expectations, at US$369m, while statutory losses ballooned to US$0.23 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Ranpak Holdings

After the latest results, the three analysts covering Ranpak Holdings are now predicting revenues of US$396.3m in 2025. If met, this would reflect an okay 7.4% improvement in revenue compared to the last 12 months. Losses are forecast to narrow 4.3% to US$0.21 per share. Before this latest report, the consensus had been expecting revenues of US$398.5m and US$0.18 per share in losses. While this year's revenue estimates held steady, there was also a noticeable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Despite expectations of heavier losses next year,the analysts have lifted their price target 9.8% to US$11.17, perhaps implying these losses are not expected to be recurring over the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ranpak Holdings, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$7.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ranpak Holdings' past performance and to peers in the same industry. It's clear from the latest estimates that Ranpak Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 7.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Ranpak Holdings to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still 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.

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 Ranpak Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Ranpak Holdings 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.