€243 - That's What Analysts Think Krka, d. d. (LJSE:KRKG) Is Worth After These Results
Krka, d. d. (LJSE:KRKG) shareholders are probably feeling a little disappointed, since its shares fell 2.6% to €262 in the week after its latest first-quarter results. Results overall were respectable, with statutory earnings of €13.21 per share roughly in line with what the analysts had forecast. Revenues of €566m came in 4.5% ahead of analyst predictions. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the five analysts covering Krka d. d are now predicting revenues of €2.17b in 2026. If met, this would reflect a satisfactory 2.6% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €13.66, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €2.17b and earnings per share (EPS) of €13.32 in 2026. So the consensus seems to have become somewhat more optimistic on Krka d. d's earnings potential following these results.
Check out our latest analysis for Krka d. d
The consensus price target rose 6.6% to €243, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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 Krka d. d at €300 per share, while the most bearish prices it at €115. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Krka d. d's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2026 being well below the historical 6.4% 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 5.1% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Krka d. d.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Krka d. d 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 Krka d. d's revenue is expected to perform worse 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.
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 Krka d. d analysts - going out to 2028, and you can see them free on our platform here.
You can also see our analysis of Krka d. d's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.