Remedy Entertainment Oyj (HEL:REMEDY) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Remedy Entertainment Oyj (HEL:REMEDY) had a good week, as its shares rose 5.2% to close at €17.14 following the release of its second-quarter results. Revenues of €10m fell short of estimates by 15%, but statutory losses were tightly controlled, with the per-share loss of €0.24 being 16% smaller than consensus predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Remedy Entertainment Oyj after the latest results.

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Following the latest results, Remedy Entertainment Oyj's dual analysts are now forecasting revenues of €105.0m in 2026. This would be a major 100% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Remedy Entertainment Oyj forecast to report a statutory profit of €0.17 per share. Before this earnings report, the analysts had been forecasting revenues of €107.0m and earnings per share (EPS) of €0.28 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

View our latest analysis for Remedy Entertainment Oyj

Despite cutting their earnings forecasts,the analysts have lifted their price target 5.1% to €20.50, suggesting that these impacts are not expected to weigh on the stock's value in the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Remedy Entertainment Oyj's growth to accelerate, with the forecast 300% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Remedy Entertainment Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Remedy Entertainment Oyj. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Remedy Entertainment Oyj going out as far as 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Remedy Entertainment Oyj 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.