Growth Investors: Industry Analysts Just Upgraded Their Swissquote Group Holding Ltd (VTX:SQN) Revenue Forecasts By 13%

Swissquote Group Holding Ltd (VTX:SQN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 8.5% over the past week, closing at CHF130. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for Swissquote Group Holding from its twin analysts is for revenues of CHF367m in 2021 which, if met, would be a notable 9.2% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF323m in 2021. It looks like there's been a clear increase in optimism around Swissquote Group Holding, given the nice gain to revenue forecasts.

View our latest analysis for Swissquote Group Holding

Additionally, the consensus price target for Swissquote Group Holding increased 52% to CHF160, showing a clear increase in optimism from the analysts involved.

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. It's pretty clear that there is an expectation that Swissquote Group Holding's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 9.2% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.2% per year. So it's pretty clear that, while Swissquote Group Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Swissquote Group Holding.

Looking to learn more? At least one of Swissquote Group Holding's twin analysts has provided estimates out to 2025, which can be seen for 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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