Investors in Seplat Energy Plc( LON:SEPL ) had a good week, as its shares rose 8.8% to close at UK£5.92 following the release of its quarterly results. It was a mildly positive result, with revenues exceeding expectations at US$841m, while statutory earnings per share (EPS) of US$0.27 were in line with analyst forecasts. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Seplat Energy after the latest results.
Taking into account the latest results, the consensus forecast from Seplat Energy's four analysts is for revenues of US$3.08b in 2026. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 69% to US$0.49. In the lead-up to this report, the analysts had been modelling revenues of US$2.68b and earnings per share (EPS) of US$0.24 in 2026. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.
See our latest analysis for Seplat Energy
With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to UK£6.35per share. 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. Currently, the most bullish analyst values Seplat Energy at UK£6.98 per share, while the most bearish prices it at UK£5.52. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Seplat Energy is an easy business to forecast or the the analysts are all using similar assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Seplat Energy's revenue growth is expected to slow, with the forecast 16% annualised growth rate until the end of 2026 being well below the historical 30% 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) 2.0% per year. Even after the forecast slowdown in growth, it seems obvious that Seplat Energy is also expected to grow faster than the wider 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 Seplat Energy following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Seplat Energy analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Seplat Energy .
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This article by Simply Wall St is general in nature.
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