Growth Investors: Industry Analysts Just Upgraded Their Komax Holding AG (VTX:KOMN) Revenue Forecasts By 16%

Komax Holding AG (VTX:KOMN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Komax Holding will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Komax Holding from its four analysts is for revenues of CHF560m in 2022 which, if met, would be a notable 18% increase on its sales over the past 12 months. Statutory earnings per share are presumed to expand 15% to CHF10.15. Before this latest update, the analysts had been forecasting revenues of CHF481m and earnings per share (EPS) of CHF10.56 in 2022. Although sales sentiment looks to be improving, the analysts have made a minor downgrade to per-share earnings estimates, showing a decline in sentiment this week.

Check out our latest analysis for Komax Holding

Analysts also upgraded Komax Holding's price target 10.0% to CHF307, implying that the higher sales are expected to generate enough value to offset the forecast decline in earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Komax Holding analyst has a price target of CHF320 per share, while the most pessimistic values it at CHF190. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Komax Holding's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Komax Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 39% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually. Not only are Komax Holding's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Komax Holding.

Analysts are definitely bullish on Komax Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other concern we've identified, for 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.

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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.