Analysts Have Been Trimming Their Sligro Food Group N.V. (AMS:SLIGR) Price Target After Its Latest Report
It's been a mediocre week for Sligro Food Group N.V. (AMS:SLIGR) shareholders, with the stock dropping 16% to €10.18 in the week since its latest interim results. Sligro Food Group reported in line with analyst predictions, delivering revenues of €1.3b and statutory earnings per share of €0.68, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week's earnings report, Sligro Food Group's four analysts are forecasting 2026 revenues to be €2.71b, approximately in line with the last 12 months. Per-share earnings are expected to jump 22% to €0.72. In the lead-up to this report, the analysts had been modelling revenues of €2.74b and earnings per share (EPS) of €0.89 in 2026. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.
View our latest analysis for Sligro Food Group
It might be a surprise to learn that the consensus price target fell 7.5% to €12.83, with the analysts clearly linking lower forecast earnings to the performance of the stock price. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Sligro Food Group, with the most bullish analyst valuing it at €14.00 and the most bearish at €11.00 per share. This is a very narrow spread of estimates, implying either that Sligro Food Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's pretty clear that there is an expectation that Sligro Food Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this to the 59 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.9% per year. So it's pretty clear that, while Sligro Food Group'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 Sligro Food Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sligro Food Group's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Sligro Food Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Sligro Food Group going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Sligro Food Group (1 is concerning!) that you need to take into consideration.
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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.