Need To Know: Analysts Are Much More Bullish On AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) Revenues

Shareholders in AT & S Austria Technologie & Systemtechnik Aktiengesellschaft (VIE:ATS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that AT & S Austria Technologie & Systemtechnik will make substantially more sales than they'd previously expected.

After the upgrade, the five analysts covering AT & S Austria Technologie & Systemtechnik are now predicting revenues of €2.2b in 2023. If met, this would reflect a substantial 37% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 2.4% to €2.45. Prior to this update, the analysts had been forecasting revenues of €1.9b and earnings per share (EPS) of €2.45 in 2023. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for AT & S Austria Technologie & Systemtechnik

It may not be a surprise to see that the analysts have reconfirmed their price target of €60.83, implying that the uplift in sales is not expected to greatly contribute to AT & S Austria Technologie & Systemtechnik's valuation in the near term. 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. Currently, the most bullish analyst values AT & S Austria Technologie & Systemtechnik at €90.00 per share, while the most bearish prices it at €27.00. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

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. It's clear from the latest estimates that AT & S Austria Technologie & Systemtechnik's rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 9.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AT & S Austria Technologie & Systemtechnik is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at AT & S Austria Technologie & Systemtechnik.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for AT & S Austria Technologie & Systemtechnik going out to 2025, and you can see them 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.