US$64.50 - That's What Analysts Think Koppers Holdings Inc. (NYSE:KOP) Is Worth After These Results
Koppers Holdings Inc. (NYSE:KOP) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Koppers Holdings reported in line with analyst predictions, delivering revenues of US$2.2b and statutory earnings per share of US$4.14, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Koppers Holdings
Taking into account the latest results, the consensus forecast from Koppers Holdings' two analysts is for revenues of US$2.24b in 2024. This reflects an okay 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.0% to US$4.54. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.19b and earnings per share (EPS) of US$4.53 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
The consensus price target increased 13% to US$64.50, with an improved revenue forecast carrying the promise of a more valuable business, in time.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Koppers Holdings' revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2024 being well below the historical 5.8% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.4% annually. Factoring in the forecast slowdown in growth, it looks like Koppers Holdings is forecast to grow at about the same rate as 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Koppers Holdings will grow in line with the overall 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 in mind, we wouldn't be too quick to come to a conclusion on Koppers Holdings. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Koppers Holdings you should be aware of, and 1 of them can't be ignored.
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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.
