Yahoo Finance EFG International AG (VTX:EFGN) Analysts Are Pretty Bullish On The Stock After Recent Results
Investors in EFG International AG (VTX:EFGN) had a good week, as its shares rose 4.0% to close at CHF8.89 following the release of its annual results. It was an okay report, and revenues came in at CHF1.3b, approximately in line with analyst estimates leading up to the results announcement. The analysts 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 estimates to see what could be in store for next year.
See our latest analysis for EFG International
Taking into account the latest results, the most recent consensus for EFG International from three analysts is for revenues of CHF1.34b in 2023 which, if met, would be a satisfactory 6.0% increase on its sales over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of CHF1.26b and earnings per share (EPS) of CHF0.66 in 2023. What's really interesting is that while the consensus made a slight bump in revenue estimates, it no longer provides an earnings per share estimate, suggesting that revenues are now the focus of the business after this latest result.
Additionally, the consensus price target for EFG International rose 5.7% to CHF9.52, showing a clear increase in optimism from the the analysts involved. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values EFG International at CHF10.25 per share, while the most bearish prices it at CHF9.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting EFG International is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that EFG International's rate of growth is expected to accelerate meaningfully, with the forecast 6.0% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. EFG International is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.
The Bottom Line
The highlight for us was that the analysts increased their revenue forecasts for EFG International next year. They also upgraded their revenue forecasts, although the latest estimates suggest that EFG International will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
At least one of EFG International's three analysts has provided estimates out to 2025, which can be seen for free on our platform here.
You still need to take note of risks, for example - EFG International has 1 warning sign we think 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.
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