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The second-quarter results for NFON AG (ETR:NFN) were released last week, making it a good time to revisit its performance. 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.
Check out our latest analysis for NFON
Taking into account the latest results, the most recent consensus for NFON from three analysts is for revenues of €86.7m in 2024. If met, it would imply a sizeable 39% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 322% to €0.12. Before this earnings report, the analysts had been forecasting revenues of €87.0m and earnings per share (EPS) of €0.12 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of €9.65, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on NFON, with the most bullish analyst valuing it at €17.00 and the most bearish at €6.00 per share. 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. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. The analysts are definitely expecting NFON's growth to accelerate, with the forecast 92% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that NFON is expected to grow much faster than its industry.