The Prisma Properties AB (publ) (STO:PRISMA) Second-Quarter Results Are Out And Analysts Have Published New Forecasts
Investors in Prisma Properties AB (publ) (STO:PRISMA) had a good week, as its shares rose 7.1% to close at kr25.50 following the release of its second-quarter results. It was a credible result overall, with revenues of kr176m and statutory earnings per share of kr2.13 both in line with analyst estimates, showing that Prisma Properties is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering Prisma Properties are now predicting revenues of kr718.4m in 2026. If met, this would reflect a meaningful 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 4.0% to kr2.65 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr720.3m and earnings per share (EPS) of kr2.93 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
See our latest analysis for Prisma Properties
It might be a surprise to learn that the consensus price target was broadly unchanged at kr29.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Prisma Properties, with the most bullish analyst valuing it at kr30.00 and the most bearish at kr28.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 29% growth on an annualised basis. That is in line with its 33% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.8% per year. So although Prisma Properties is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Prisma Properties. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr29.33, with the latest estimates not enough to have an impact on their price targets.
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 Prisma Properties 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 3 warning signs for Prisma Properties (of which 2 are a bit unpleasant!) 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.