US$57.00 - That's What Analysts Think Koppers Holdings Inc. (NYSE:KOP) Is Worth After These Results

Investors in Koppers Holdings Inc. (NYSE:KOP) had a good week, as its shares rose 4.5% to close at US$51.24 following the release of its second-quarter results. Revenues of US$520m beat expectations by a respectable 2.7%, although statutory losses per share increased. Koppers Holdings lost US$7.71, which was 1,017% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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 current consensus from Koppers Holdings' three analysts is for revenues of US$1.94b in 2026. This would reflect a modest 2.3% increase on its revenue over the past 12 months. Statutory losses are expected to reduce, shrinking 12% from last year to US$5.16. In the lead-up to this report, the analysts had been modelling revenues of US$1.94b and earnings per share (EPS) of US$0.07 in 2026. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

Check out our latest analysis for Koppers Holdings

Although the analysts are now forecasting higher losses, the average price target rose 12% to 51, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. 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. Currently, the most bullish analyst values Koppers Holdings at US$62.00 per share, while the most bearish prices it at US$54.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Koppers Holdings is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Koppers Holdings' growth to accelerate, with the forecast 4.7% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.8% annually. Koppers Holdings is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that the analysts are expecting Koppers Holdings to become unprofitable next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Koppers Holdings analysts - going out to 2028, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Koppers Holdings you should be aware of.

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.