New Forecasts: Here's What Analysts Think The Future Holds For Trisura Group Ltd. (TSE:TSU)

Trisura Group Ltd. (TSE:TSU) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Trisura Group has also found favour with investors, with the stock up a worthy 22% to CA$120 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the seven analysts covering Trisura Group are now predicting revenues of CA$1.3b in 2021. If met, this would reflect a huge 491% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 27% to CA$4.22. Previously, the analysts had been modelling revenues of CA$1.1b and earnings per share (EPS) of CA$3.90 in 2021. The most recent forecasts are noticeably more optimistic, with a nice gain to revenue estimates and a lift to earnings per share as well.

View our latest analysis for Trisura Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to CA$135 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Trisura Group at CA$177 per share, while the most bearish prices it at CA$110. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Trisura Group shareholders.

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. The analysts are definitely expecting Trisura Group's growth to accelerate, with the forecast 5x growth ranking favourably alongside historical growth of 30% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.5% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Trisura 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 analysts 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. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Trisura Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Trisura Group going out to 2022, and you can see them free on our platform here..

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

When trading Trisura Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.