Terna S.p.A. (BIT:TRN) Half-Year Results: Here's What Analysts Are Forecasting For This Year
Terna S.p.A. (BIT:TRN) shareholders are probably feeling a little disappointed, since its shares fell 3.8% to €9.97 in the week after its latest half-yearly results. The results were positive, with revenue coming in at €2.1b, beating analyst expectations by 3.2%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Terna after the latest results.
After the latest results, the 17 analysts covering Terna are now predicting revenues of €4.41b in 2026. If met, this would reflect a credible 4.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.1% to €0.56. In the lead-up to this report, the analysts had been modelling revenues of €4.41b and earnings per share (EPS) of €0.55 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Terna
The analysts reconfirmed their price target of €9.80, showing that the business is executing well and in line with expectations. 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. The most optimistic Terna analyst has a price target of €11.20 per share, while the most pessimistic values it at €8.65. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Terna's past performance and to peers in the same industry. We would highlight that Terna's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2026 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.8% annually. Even after the forecast slowdown in growth, it seems obvious that Terna is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €9.80, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Terna analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Terna , and understanding these should be part of your investment process.
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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.