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Last week, you might have seen that Cancom SE (ETR:COK) released its half-year result to the market. The early response was not positive, with shares down 5.5% to €28.62 in the past week. Revenues were in line with forecasts, at €835m, although statutory earnings per share came in 13% below what the analysts expected, at €0.49 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Cancom
Taking into account the latest results, the current consensus from Cancom's seven analysts is for revenues of €1.79b in 2024. This would reflect an okay 4.3% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 6.9% to €1.27. In the lead-up to this report, the analysts had been modelling revenues of €1.85b and earnings per share (EPS) of €1.31 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the €33.84 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. Currently, the most bullish analyst values Cancom at €43.00 per share, while the most bearish prices it at €29.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cancom's rate of growth is expected to accelerate meaningfully, with the forecast 8.8% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.4% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 8.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cancom is expected to grow at about the same rate as the wider industry.