It's been a good week for Valeo SE (EPA:FR) shareholders, because the company has just released its latest half-yearly results, and the shares gained 6.5% to €13.73. It was an okay result overall, with revenues coming in at €10b, roughly what the analysts had been expecting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Valeo after the latest results.
Taking into account the latest results, Valeo's 14 analysts currently expect revenues in 2026 to be €20.5b, approximately in line with the last 12 months. Per-share earnings are expected to bounce 52% to €1.27. Before this earnings report, the analysts had been forecasting revenues of €20.4b and earnings per share (EPS) of €1.27 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Valeo
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €13.86. 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. The most optimistic Valeo analyst has a price target of €22.00 per share, while the most pessimistic values it at €10.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Valeo's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.6% by the end of 2026. This indicates a significant reduction from annual growth of 3.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.3% per year. It's pretty clear that Valeo's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Valeo's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €13.86, 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. At Simply Wall St, we have a full range of analyst estimates for Valeo going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 4 warning signs for Valeo that you should be aware of.
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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.