News Flash: Analysts Just Made A Sizeable Upgrade To Their RTL Group S.A. (ETR:RRTL) Forecasts
Celebrations may be in order for RTL Group S.A. (ETR:RRTL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
Following the upgrade, the current consensus from RTL Group's six analysts is for revenues of €7.1b in 2026 which - if met - would reflect a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 246% to €2.06. Before this latest update, the analysts had been forecasting revenues of €6.1b and earnings per share (EPS) of €2.04 in 2026. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.
See our latest analysis for RTL Group
Even though revenue forecasts increased, there was no change to the consensus price target of €34.01, suggesting the analysts are focused on earnings as the driver of value creation.
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. For example, we noticed that RTL Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 16% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 2.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.7% annually. Not only are RTL Group'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 obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at RTL Group.
Analysts are definitely bullish on RTL Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.
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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.