Modern Times Group MTG AB (publ) (STO:MTG B) Just Reported, And Analysts Assigned A kr148 Price Target

There's been a notable change in appetite for Modern Times Group MTG AB (publ) (STO:MTG B) shares in the week since its quarterly report, with the stock down 14% to kr103. Revenues of kr3.0b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr1.25, missing estimates by 2.7%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the current consensus from Modern Times Group MTG's five analysts is for revenues of kr13.1b in 2027. This would reflect a reasonable 6.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 262% to kr8.58. In the lead-up to this report, the analysts had been modelling revenues of kr13.1b and earnings per share (EPS) of kr9.25 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Modern Times Group MTG

It might be a surprise to learn that the consensus price target fell 8.3% to kr148, with the analysts clearly linking lower forecast earnings to the performance of the stock price. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Modern Times Group MTG analyst has a price target of kr180 per share, while the most pessimistic values it at kr121. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Modern Times Group MTG's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2027 being well below the historical 23% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Modern Times Group MTG is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Modern Times Group MTG's revenue is expected to perform worse 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 Modern Times Group MTG's future valuation.

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 estimates - from multiple Modern Times Group MTG analysts - going out to 2028, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Modern Times Group MTG you should know about.

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