Kjell Group AB (publ) (STO:KJELL) Just Reported And Analysts Have Been Lifting Their Price Targets
Shareholders of Kjell Group AB (publ) (STO:KJELL) will be pleased this week, given that the stock price is up 12% to kr19.60 following its latest quarterly results. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
Taking into account the latest results, the current consensus from Kjell Group's solitary analyst is for revenues of kr2.73b in 2027. This would reflect a meaningful 14% increase on its revenue over the past 12 months. Kjell Group is also expected to turn profitable, with statutory earnings of kr0.85 per share. In the lead-up to this report, the analyst had been modelling revenues of kr2.68b and earnings per share (EPS) of kr0.67 in 2027. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analyst has become more bullish after the latest result.
See our latest analysis for Kjell Group
The consensus price target rose 75% to kr17.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.
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. One thing stands out from these estimates, which is that Kjell Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2027. If achieved, this would be a much better result than the 0.9% 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 4.2% per year. Not only are Kjell Group's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Kjell Group 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. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Kjell Group going out as far as 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 1 warning sign for Kjell Group you should be aware of.
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