Earnings Release: Here's Why Analysts Cut Their Fasadgruppen Group AB (publ) (STO:FG) Price Target To kr25.00
A week ago, Fasadgruppen Group AB (publ) (STO:FG) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of kr1.4b arriving 2.2% ahead of forecasts. Statutory earnings per share (EPS) were kr0.70, 2.9% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Fasadgruppen Group after the latest results.
Taking into account the latest results, the consensus forecast from Fasadgruppen Group's three analysts is for revenues of kr5.47b in 2026. This reflects a credible 4.2% improvement in revenue compared to the last 12 months. Fasadgruppen Group is also expected to turn profitable, with statutory earnings of kr2.11 per share. In the lead-up to this report, the analysts had been modelling revenues of kr5.43b and earnings per share (EPS) of kr2.33 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
See our latest analysis for Fasadgruppen Group
The average price target fell 7.4% to kr25.00, with reduced earnings forecasts clearly tied to a lower valuation estimate. 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 Fasadgruppen Group analyst has a price target of kr28.00 per share, while the most pessimistic values it at kr21.00. This is a very narrow spread of estimates, implying either that Fasadgruppen Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fasadgruppen Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Fasadgruppen Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.5% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.3% annually. So it's pretty clear that, while Fasadgruppen Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Fasadgruppen Group's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Fasadgruppen Group going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Fasadgruppen Group you should be aware of.
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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.