Analysts Just Made A Sizeable Upgrade To Their Criteo S.A. (NASDAQ:CRTO) Forecasts
Criteo S.A. (NASDAQ:CRTO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 23% to US$32.33 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the latest upgrade, the 13 analysts covering Criteo provided consensus estimates of US$1.2b revenue in 2024, which would reflect a disturbing 41% decline on its sales over the past 12 months. Per-share earnings are expected to shoot up 56% to US$1.49. Before this latest update, the analysts had been forecasting revenues of US$1.0b and earnings per share (EPS) of US$0.86 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Criteo
With these upgrades, we're not surprised to see that the analysts have lifted their price target 10% to US$35.53 per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Criteo's past performance and to peers in the same industry. One more thing stood out to us about these estimates, and it's the idea that Criteo's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 41% to the end of 2024. This tops off a historical decline of 3.0% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.3% per year. So while a broad number of companies are forecast to grow, unfortunately Criteo is expected to see its sales affected worse than other companies in the industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Criteo could be worth investigating further.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Criteo analysts - going out to 2026, and you can see them free on our platform here.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.
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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.
