Investors in Ceconomy AG (ETR:CEC) had a good week, as its shares rose 3.7% to close at €2.88 following the release of its third-quarter results. 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.
See our latest analysis for Ceconomy
Taking into account the latest results, Ceconomy’s seven analysts currently expect revenues in 2025 to be €22.8b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 47% to €0.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of €22.7b and earnings per share (EPS) of €0.40 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There’s been no major changes to the consensus price target of €3.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock’s valuation. 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. The most optimistic Ceconomy analyst has a price target of €3.50 per share, while the most pessimistic values it at €2.60. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Ceconomy shareholders.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Ceconomy’s revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2025 being well below the historical 1.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% 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 Ceconomy.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ceconomy’s earnings potential next year. 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 held steady at €3.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates – from multiple Ceconomy analysts – going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we’ve spotted 2 warning signs for Ceconomy you should be aware of, and 1 of them shouldn’t be ignored.
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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.