Raisio plc (HEL:RAIVV) came out with its third-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of €58m and statutory earnings per share of €0.04. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the consensus forecast from Raisio’s three analysts is for revenues of €235.7m in 2027. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 27% to €0.15. In the lead-up to this report, the analysts had been modelling revenues of €236.5m and earnings per share (EPS) of €0.16 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for Raisio
The consensus price target held steady at €2.77, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That’s not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Raisio at €2.90 per share, while the most bearish prices it at €2.50. The narrow spread of estimates could suggest that the business’ future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 Raisio’s growth to accelerate, with the forecast 3.2% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 2.8% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Raisio is expected to grow at about the same rate as the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Raisio. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €2.77, 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 Raisio analysts – going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we’ve spotted 1 warning sign for Raisio you should know about.
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