Explore Saputo’s Fair Values from the Community and select yours
Shareholders of Saputo Inc. (TSE:SAP) will be pleased this week, given that the stock price is up 12% to CA$32.00 following its latest first-quarter results. Saputo missed revenue estimates by 2.4%, coming in atCA$4.6b, although statutory earnings per share (EPS) of CA$0.40 beat expectations, coming in 8.1% ahead of analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
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Following last week’s earnings report, Saputo’s nine analysts are forecasting 2026 revenues to be CA$19.5b, approximately in line with the last 12 months. Earnings are expected to improve, with Saputo forecast to report a statutory profit of CA$1.70 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CA$19.7b and earnings per share (EPS) of CA$1.77 in 2026. So it looks like there’s been a small decline in overall sentiment after the recent results – there’s been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for Saputo
It might be a surprise to learn that the consensus price target was broadly unchanged at CA$31.45, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Saputo analyst has a price target of CA$38.00 per share, while the most pessimistic values it at CA$26.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Saputo’s past performance and to peers in the same industry. It’s pretty clear that there is an expectation that Saputo’s revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 6.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.2% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Saputo.