Here's What Analysts Are Forecasting For Palfinger AG (VIE:PAL) After Its Second-Quarter Results
Shareholders might have noticed that Palfinger AG (VIE:PAL) filed its quarterly result this time last week. The early response was not positive, with shares down 7.3% to €30.30 in the past week. It was a credible result overall, with revenues of €604m and statutory earnings per share of €2.69 both in line with analyst estimates, showing that Palfinger is executing in line with expectations. 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.
Taking into account the latest results, the most recent consensus for Palfinger from five analysts is for revenues of €2.41b in 2026. If met, it would imply a modest 2.0% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.5% to €2.73. Before this earnings report, the analysts had been forecasting revenues of €2.44b and earnings per share (EPS) of €2.95 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.
View our latest analysis for Palfinger
It might be a surprise to learn that the consensus price target was broadly unchanged at €42.70, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Palfinger analyst has a price target of €48.00 per share, while the most pessimistic values it at €36.50. This is a very narrow spread of estimates, implying either that Palfinger is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's pretty clear that there is an expectation that Palfinger's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Palfinger is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Palfinger. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 Palfinger analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Palfinger , and understanding them should be part of your investment process.
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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.