Analysts Have Been Trimming Their HusCompagniet A/S (CPH:HUSCO) Price Target After Its Latest Report
HusCompagniet A/S (CPH:HUSCO) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to kr.32.00 in the week after its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 7.6%to hit kr.855m. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, HusCompagniet's three analysts currently expect revenues in 2026 to be kr.3.19b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 34% to kr.3.47. Before this latest report, the consensus had been expecting revenues of kr.3.14b and kr.2.20 per share in losses. While this year's revenue estimates held steady, there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
View our latest analysis for HusCompagniet
With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 5.1% to kr.37.00, with the analysts signalling that growing losses would be a definite concern. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic HusCompagniet analyst has a price target of kr.39.00 per share, while the most pessimistic values it at kr.35.00. This is a very narrow spread of estimates, implying either that HusCompagniet is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HusCompagniet's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2026 compared to the historical decline of 12% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.4% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect HusCompagniet to suffer worse than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at HusCompagniet. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of HusCompagniet's future valuation.
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 HusCompagniet analysts - going out to 2028, and you can see them free on our platform here.
It might also be worth considering whether HusCompagniet's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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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.