One Analyst's Earnings Estimates For Enterprise Group, Inc. (TSE:E) Are Surging Higher

Shareholders in Enterprise Group, Inc. (TSE:E) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Enterprise Group's solitary analyst is for revenues of CA$32m in 2023 which - if met - would reflect a meaningful 8.4% increase on its sales over the past 12 months. Statutory earnings per share are presumed to grow 17% to CA$0.08. Before this latest update, the analyst had been forecasting revenues of CA$29m and earnings per share (EPS) of CA$0.05 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Enterprise Group

It will come as no surprise to learn that the analyst has increased their price target for Enterprise Group 9.8% to CA$1.12 on the back of these upgrades.

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. The analyst is definitely expecting Enterprise Group's growth to accelerate, with the forecast 8.4% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Enterprise Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Enterprise Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Enterprise Group going out as far as 2024, 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.