€33.05: That's What Analysts Think Huhtamäki Oyj (HEL:HUH1V) Is Worth After Its Latest Results
Shareholders might have noticed that Huhtamäki Oyj (HEL:HUH1V) filed its third-quarter result this time last week. The early response was not positive, with shares down 5.8% to €25.62 in the past week. Results overall were respectable, with statutory earnings of €0.57 per share roughly in line with what the analysts had forecast. Revenues of €1.0b came in 2.8% ahead of analyst predictions. 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, the consensus forecast from Huhtamäki Oyj's nine analysts is for revenues of €4.10b in 2027. This reflects a credible 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to €2.33. Before this earnings report, the analysts had been forecasting revenues of €4.13b and earnings per share (EPS) of €2.52 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
Check out our latest analysis for Huhtamäki Oyj
The average price target fell 5.2% to €33.05, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Huhtamäki Oyj analyst has a price target of €37.00 per share, while the most pessimistic values it at €29.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Huhtamäki Oyj's growth to accelerate, with the forecast 3.0% annualised growth to the end of 2027 ranking favourably alongside historical growth of 0.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Huhtamäki Oyj is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Huhtamäki Oyj. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Huhtamäki Oyj's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Huhtamäki Oyj. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Huhtamäki Oyj analysts - going out to 2028, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Huhtamäki Oyj that you should be aware of.
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