Analysts Just Published A Bright New Outlook For LEM Holding SA's (VTX:LEHN)
LEM Holding SA (VTX:LEHN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. LEM Holding has also found favour with investors, with the stock up a remarkable 14% to CHF525 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
After this upgrade, LEM Holding's five analysts are now forecasting revenues of CHF324m in 2027. This would be a solid 9.0% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 71% to CHF25.53. Prior to this update, the analysts had been forecasting revenues of CHF293m and earnings per share (EPS) of CHF16.55 in 2027. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for LEM Holding
It will come as no surprise to learn that the analysts have increased their price target for LEM Holding 19% to CHF491 on the back of these upgrades.
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. One thing stands out from these estimates, which is that LEM Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2027. If achieved, this would be a much better result than the 4.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.3% per year. Not only are LEM Holding's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, LEM Holding could be worth investigating further.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with LEM Holding, including a weak balance sheet. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.
You can also see our analysis of LEM Holding'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.