Analysts Have Been Trimming Their Suominen Oyj (HEL:SUY1V) Price Target After Its Latest Report

The second-quarter results for Suominen Oyj (HEL:SUY1V) were released last week, making it a good time to revisit its performance. It looks like the results were pretty good overall. While revenues of €106m were in line with analyst predictions, statutory losses were much smaller than expected, with Suominen Oyj losing €0.03 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus from Suominen Oyj's three analysts is for revenues of €418.1m in 2026. This would reflect a modest 5.5% increase on its revenue over the past 12 months. Losses are expected to increase slightly, to €0.12 per share. Before this latest report, the consensus had been expecting revenues of €420.8m and €0.16 per share in losses. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very promising decrease in losses per share in particular.

See our latest analysis for Suominen Oyj

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 13% to €0.78. It looks likethe analysts have become less optimistic about the overall business. 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 Suominen Oyj, with the most bullish analyst valuing it at €1.00 and the most bearish at €0.60 per share. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Suominen Oyj's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 11% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.1% annually. So it looks like Suominen Oyj is expected to grow faster than its competitors, at least for a while.

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. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Suominen Oyj's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Suominen Oyj. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Suominen Oyj going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 3 warning signs for Suominen Oyj (2 make us uncomfortable!) 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.