SCHOTT Pharma AG & Co. KGaA (ETR:1SXP) Just Reported And Analysts Have Been Lifting Their Price Targets
Last week, you might have seen that SCHOTT Pharma AG & Co. KGaA (ETR:1SXP) released its third-quarter result to the market. The early response was not positive, with shares down 2.4% to €21.95 in the past week. It was a workmanlike result, with revenues of €282m coming in 3.4% ahead of expectations, and statutory earnings per share of €0.26, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from SCHOTT Pharma KGaA's eleven analysts is for revenues of €1.10b in 2027. This would reflect a reasonable 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 19% to €1.07. Before this earnings report, the analysts had been forecasting revenues of €1.09b and earnings per share (EPS) of €1.08 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for SCHOTT Pharma KGaA
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.9% to €21.69. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. Currently, the most bullish analyst values SCHOTT Pharma KGaA at €27.00 per share, while the most bearish prices it at €13.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of SCHOTT Pharma KGaA'shistorical trends, as the 6.2% annualised revenue growth to the end of 2027 is roughly in line with the 7.0% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.7% annually. So it's pretty clear that SCHOTT Pharma KGaA is expected to grow slower than similar companies in the same 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SCHOTT Pharma KGaA'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.
With that in mind, we wouldn't be too quick to come to a conclusion on SCHOTT Pharma KGaA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple SCHOTT Pharma KGaA analysts - going out to 2028, and you can see them free on our platform here.
You can also view our analysis of SCHOTT Pharma KGaA's balance sheet, and whether we think SCHOTT Pharma KGaA is carrying too much debt, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.