Investors in OVH Groupe S.A. (EPA:OVH) had a good week, as its shares rose 4.4% to close at €15.70 following the release of its full-year results. It was an okay report, and revenues came in at €1.1b, approximately in line with analyst estimates leading up to the results announcement. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on OVH Groupe after the latest results.
Taking into account the latest results, the most recent consensus for OVH Groupe from ten analysts is for revenues of €1.26b in 2027. If met, it would imply a solid 10% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.25b and earnings per share (EPS) of €0.19 in 2027. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
See our latest analysis for OVH Groupe
Additionally, the consensus price target for OVH Groupe rose 12% to €15.17, showing a clear increase in optimism from the the analysts involved. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on OVH Groupe, with the most bullish analyst valuing it at €22.00 and the most bearish at €6.00 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We can infer from the latest estimates that forecasts expect a continuation of OVH Groupe'shistorical trends, as the 10% annualised revenue growth to the end of 2027 is roughly in line with the 10% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.5% annually. So although OVH Groupe is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
We have estimates for OVH Groupe from its ten analysts out to 2029, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for OVH Groupe you should know about.
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