Yahoo Finance €43.20: That's What Analysts Think CompuGroup Medical SE & Co. KGaA (ETR:COP) Is Worth After Its Latest Results
Last week, you might have seen that CompuGroup Medical SE & Co. KGaA (ETR:COP) released its first-quarter result to the market. The early response was not positive, with shares down 2.8% to €27.82 in the past week. Revenues came in 2.1% below expectations, at €285m. Statutory earnings per share were relatively better off, with a per-share profit of €0.88 being roughly in line with analyst estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for CompuGroup Medical SE KGaA
Following last week's earnings report, CompuGroup Medical SE KGaA's ten analysts are forecasting 2024 revenues to be €1.24b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 76% to €1.69. Before this earnings report, the analysts had been forecasting revenues of €1.24b and earnings per share (EPS) of €1.78 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target fell 6.2% to €43.20, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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. There are some variant perceptions on CompuGroup Medical SE KGaA, with the most bullish analyst valuing it at €64.00 and the most bearish at €31.00 per share. 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.
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. It's pretty clear that there is an expectation that CompuGroup Medical SE KGaA's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.6% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CompuGroup Medical SE KGaA.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 CompuGroup Medical SE KGaA'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 CompuGroup Medical SE KGaA analysts - going out to 2026, and you can see them free on our platform here.
Even so, be aware that CompuGroup Medical SE KGaA is showing 2 warning signs in our investment analysis , 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.
