Bullish: This Analyst Just Lifted Their Bellevue Group AG (VTX:BBN) Outlook For This Year

Shareholders in Bellevue Group AG (VTX:BBN) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Bellevue Group from its single analyst is for revenues of CHF131m in 2021 which, if met, would be a meaningful 19% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 89% to CHF3.26. Before this latest update, the analyst had been forecasting revenues of CHF118m and earnings per share (EPS) of CHF2.70 in 2021. 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 Bellevue Group

It will come as no surprise to learn that the analyst has increased their price target for Bellevue Group 33% to CHF40.00 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. The analyst is definitely expecting Bellevue Group's growth to accelerate, with the forecast 19% annualised growth to the end of 2021 ranking favourably alongside historical growth of 7.0% per annum 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 4.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bellevue 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. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Bellevue Group.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Bellevue Group 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. 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.
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