Broker Revenue Forecasts For Vienna Insurance Group AG (VIE:VIG) Are Surging Higher

Vienna Insurance Group AG (VIE:VIG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Vienna Insurance Group will make substantially more sales than they'd previously expected. The stock price has risen 4.3% to €21.90 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the latest upgrade, Vienna Insurance Group's one analyst currently expects revenues in 2022 to be €11b, approximately in line with the last 12 months. Before the latest update, the analyst was foreseeing €9.9b of revenue in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

See our latest analysis for Vienna Insurance Group

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 3.0% by the end of 2022. This indicates a significant reduction from annual growth of 2.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Vienna Insurance Group is expected to lag the wider industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Vienna Insurance Group this year. They're also anticipating slower revenue growth than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Vienna Insurance Group.

Of course, there's always more to the story. One Vienna Insurance Group broker/analyst has provided estimates out to 2024, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.