Rainbows and Unicorns: The Starrag Group Holding AG (VTX:STGN) Analyst Just Became A Lot More Optimistic

Starrag Group Holding AG (VTX:STGN) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following this upgrade, Starrag Group Holding's solitary analyst are forecasting 2023 revenues to be CHF375m, approximately in line with the last 12 months. Statutory earnings per share are presumed to leap 22% to CHF7.14. Prior to this update, the analyst had been forecasting revenues of CHF340m and earnings per share (EPS) of CHF5.37 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Starrag Group Holding

It will come as no surprise to learn that the analyst has increased their price target for Starrag Group Holding 17% to CHF70.00 on the back of these upgrades.

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. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2023 compared to the historical decline of 6.2% per annum over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.9% annually. So it's pretty clear that, while it does have declining revenues, the analyst also expect Starrag Group Holding to suffer worse than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Starrag Group Holding.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Starrag Group Holding going out as far as 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.