Here's What Analysts Are Forecasting For Steadfast Group Limited (ASX:SDF) After Its Half-Yearly Results

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Shareholders might have noticed that Steadfast Group Limited (ASX:SDF) filed its interim result this time last week. The early response was not positive, with shares down 2.0% to AU$5.79 in the past week. It was an okay report, and revenues came in at AU$790m, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Steadfast Group

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Taking into account the latest results, the most recent consensus for Steadfast Group from ten analysts is for revenues of AU$1.68b in 2024. If met, it would imply a satisfactory 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 23% to AU$0.23. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$1.66b and earnings per share (EPS) of AU$0.23 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at AU$6.52. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Steadfast Group analyst has a price target of AU$7.40 per share, while the most pessimistic values it at AU$6.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Steadfast Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Steadfast Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.0% annually. Factoring in the forecast slowdown in growth, it's pretty clear that Steadfast Group is still expected to grow faster 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. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at AU$6.52, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Steadfast Group going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 2 warning signs for Steadfast Group that you need to be mindful 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.

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