Here's What Analysts Are Forecasting For Partners Group Holding AG (VTX:PGHN) After Its Yearly Results
Investors in Partners Group Holding AG (VTX:PGHN) had a good week, as its shares rose 9.2% to close at CHF820 following the release of its annual results. Partners Group Holding reported CHF1.9b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CHF39.09 beat expectations, being 4.8% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Partners Group Holding after the latest results.
See our latest analysis for Partners Group Holding
Taking into account the latest results, the current consensus from Partners Group Holding's 14 analysts is for revenues of CHF2.13b in 2023, which would reflect a meaningful 14% increase on its sales over the past 12 months. Statutory earnings per share are predicted to rise 8.1% to CHF41.64. Before this earnings report, the analysts had been forecasting revenues of CHF2.16b and earnings per share (EPS) of CHF43.70 in 2023. 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 small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at CHF985, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. Currently, the most bullish analyst values Partners Group Holding at CHF1,491 per share, while the most bearish prices it at CHF480. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Partners Group Holding'shistorical trends, as the 14% annualised revenue growth to the end of 2023 is roughly in line with the 14% annual revenue growth 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 revenues grow 5.8% per year. So it's pretty clear that Partners Group Holding is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Partners Group Holding. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CHF985, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Partners Group Holding going out to 2025, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Partners Group Holding , and understanding it should be part of your investment process.
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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.
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