UK£1.97 - That's What Analysts Think ME Group International plc (LON:MEGP) Is Worth After These Results
Shareholders of ME Group International plc (LON:MEGP) will be pleased this week, given that the stock price is up 16% to UK£1.53 following its latest annual results. The result was positive overall - although revenues of UK£298m were in line with what the analysts predicted, ME Group International surprised by delivering a statutory profit of UK£0.13 per share, modestly greater than expected. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for ME Group International
Taking into account the latest results, the most recent consensus for ME Group International from three analysts is for revenues of UK£322.2m in 2024. If met, it would imply a solid 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 4.6% to UK£0.14. In the lead-up to this report, the analysts had been modelling revenues of UK£322.5m and earnings per share (EPS) of UK£0.14 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target rose 8.1% to UK£1.97, suggesting that higher earnings estimates flow through to the stock's valuation as well. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on ME Group International, with the most bullish analyst valuing it at UK£2.05 and the most bearish at UK£1.85 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that ME Group International's rate of growth is expected to accelerate meaningfully, with the forecast 8.2% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ME Group International is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards ME Group International following these results. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for ME Group International going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for ME Group International 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.
