Yahoo Finance Materialise NV (NASDAQ:MTLS) Analysts Are Pretty Bullish On The Stock After Recent Results
There's been a major selloff in Materialise NV (NASDAQ:MTLS) shares in the week since it released its quarterly report, with the stock down 31% to US$33.97. 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.
View our latest analysis for Materialise
Taking into account the latest results, the most recent consensus for Materialise from four analysts is for revenues of €195.1m in 2021 which, if met, would be a notable 11% increase on its sales over the past 12 months. Earnings are expected to improve, with Materialise forecast to report a statutory profit of €0.04 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €204.9m and earnings per share (EPS) of €0.12 in 2021. The analysts seem less optimistic after the recent results, reducing their sales forecasts and making a pretty serious reduction to earnings per share numbers.
What's most unexpected is that the consensus price target rose 15% to €25.63, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Materialise at €37.98 per share, while the most bearish prices it at €19.63. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Materialise's revenue growth is expected to slow, with forecast 11% increase next year well below the historical 15%p.a. growth over the last five years. Compare this to the 416 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while Materialise's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Materialise. Sadly, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Materialise analysts - going out to 2024, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for Materialise that you need to take into consideration.
This article by Simply Wall St is general in nature. 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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