Allego N.V. (NYSE:ALLG) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a pretty great week for Allego N.V. (NYSE:ALLG) shareholders, with its shares surging 13% to US$2.36 in the week since its latest quarterly results. Revenues were €38m, and Allego was a dismal 11% short of estimates. 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.

See our latest analysis for Allego

After the latest results, the four analysts covering Allego are now predicting revenues of €222.0m in 2023. If met, this would reflect a major 56% improvement in sales compared to the last 12 months. The company is forecast to report a statutory loss of €0.09 in 2023, a sharp decline from a profit over the last year. Before this latest report, the consensus had been expecting revenues of €222.7m and €0.18 per share in losses. Although the revenue estimates have not really changed Allego'sfuture looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.

These new estimates led to the consensus price target rising 5.5% to US$9.63, with lower forecast losses suggesting things could be looking up for Allego. 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. There are some variant perceptions on Allego, with the most bullish analyst valuing it at US$16.00 and the most bearish at US$6.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Allego's growth to accelerate, with the forecast 81% annualised growth to the end of 2023 ranking favourably alongside historical growth of 34% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Allego is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss 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. We have estimates - from multiple Allego analysts - going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - Allego has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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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.