Stevanato Group S.p.A. Just Beat EPS By 5.1%: Here's What Analysts Think Will Happen Next

Stevanato Group S.p.A. (NYSE:STVN) just released its latest yearly results and things are looking bullish. Results were good overall, with revenues beating analyst predictions by 2.1% to hit €984m. Statutory earnings per share (EPS) came in at €0.54, some 5.1% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Stevanato Group after the latest results.

See our latest analysis for Stevanato Group

Following the latest results, Stevanato Group's eight analysts are now forecasting revenues of €1.10b in 2023. This would be a notable 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to increase 7.7% to €0.58. In the lead-up to this report, the analysts had been modelling revenues of €1.04b and earnings per share (EPS) of €0.52 in 2023. So it seems there's been a definite increase in optimism about Stevanato Group's future following the latest results, with a nice increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for Stevanato Group 24% to US$27.20on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Stevanato Group at US$32.00 per share, while the most bearish prices it at US$21.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Stevanato Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Stevanato Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. So it's pretty clear that, while Stevanato Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Stevanato Group's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business 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 Stevanato Group going out to 2025, and you can see them free on our platform here.

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