2 days ago
Sixt SE (ETR:SIX2) Released Earnings Last Week And Analysts Lifted Their Price Target To €106
Explore Sixt's Fair Values from the Community and select yours
Shareholders might have noticed that Sixt SE (ETR:SIX2) filed its interim result this time last week. The early response was not positive, with shares down 5.3% to €87.65 in the past week. Sixt reported in line with analyst predictions, delivering revenues of €1.1b and statutory earnings per share of €5.19, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sixt after the latest results.
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Following the latest results, Sixt's eight analysts are now forecasting revenues of €4.30b in 2025. This would be a credible 2.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 11% to €6.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.28b and earnings per share (EPS) of €6.76 in 2025. 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.
Check out our latest analysis for Sixt
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.1% to €106. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Sixt analyst has a price target of €125 per share, while the most pessimistic values it at €90.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Sixt's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.4% annually. So it's pretty clear that, while Sixt's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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. 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 in mind, we wouldn't be too quick to come to a conclusion on Sixt. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Sixt analysts - going out to 2027, and you can see them free on our platform here.
You still need to take note of risks, for example - Sixt has 2 warning signs we think you should be aware of.
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