Analyst Estimates: Here's What Brokers Think Of PSP Swiss Property AG (VTX:PSPN) After Its Half-Year Report
Last week saw the newest half-yearly earnings release from PSP Swiss Property AG (VTX:PSPN), an important milestone in the company's journey to build a stronger business. Revenues of CHF174m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at CHF3.75, missing estimates by 3.5%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus, from the seven analysts covering PSP Swiss Property, is for revenues of CHF356.7m in 2026. This implies a substantial 29% reduction in PSP Swiss Property's revenue over the past 12 months. Statutory earnings per share are expected to fall 15% to CHF8.31 in the same period. Before this earnings report, the analysts had been forecasting revenues of CHF361.4m and earnings per share (EPS) of CHF6.92 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.
See our latest analysis for PSP Swiss Property
The consensus price target was unchanged at CHF157, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on PSP Swiss Property, with the most bullish analyst valuing it at CHF185 and the most bearish at CHF125 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. Over the past five years, revenues have declined around 1.1% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 49% decline in revenue until the end of 2026. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 2.2% annually. While this is interesting, PSP Swiss Property's, revenues are still expected to shrink next year, and at a faster rate than the wider industry.
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 PSP Swiss Property following these results. The consensus also reconfirmed their revenue estimates, suggesting that it is performing in line with expectations. Plus, our data suggests that PSP Swiss Property is expected to perform worse than the wider industry. The consensus price target held steady at CHF157, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for PSP Swiss Property 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 PSP Swiss Property (of which 2 are significant!) 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.