Safilo Group S.p.A. (BIT:SFL) Just Reported And Analysts Have Been Lifting Their Price Targets
The investors in Safilo Group S.p.A.'s (BIT:SFL) will be rubbing their hands together with glee today, after the share price leapt 32% to €2.16 in the week following its half-year results. It was a credible result overall, with revenues of €512m and statutory earnings per share of €0.12 both in line with analyst estimates, showing that Safilo Group is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the latest results, Safilo Group's six analysts are now forecasting revenues of €981.4m in 2026. This would be a modest 2.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 17% to €0.14. Before this earnings report, the analysts had been forecasting revenues of €978.9m and earnings per share (EPS) of €0.10 in 2026. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
View our latest analysis for Safilo Group
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.8% to €2.11. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Safilo Group, with the most bullish analyst valuing it at €2.28 and the most bearish at €1.90 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 Safilo Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.0% annualised growth until the end of 2026. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.2% per year. So although Safilo Group's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Safilo Group's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Safilo Group's revenue is expected to perform worse than the wider 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.
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 Safilo Group analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Safilo Group you should know about.
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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.