One Asmallworld AG (VTX:ASWN) Analyst Just Lifted Their Revenue Forecasts By A Notable 22%

Asmallworld AG (VTX:ASWN) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Asmallworld will make substantially more sales than they'd previously expected. Asmallworld has also found favour with investors, with the stock up a notable 16% to CHF2.95 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 lone analyst covering Asmallworld is now predicting revenues of CHF18m in 2022. If met, this would reflect a meaningful 12% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of CHF14m in 2022. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

Check out our latest analysis for Asmallworld

Additionally, the consensus price target for Asmallworld increased 13% to CHF7.20, showing a clear increase in optimism from the analyst involved.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Asmallworld's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Compare this to the 59 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Asmallworld's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Asmallworld this year. They're also forecasting for revenues to grow at about the same rate as companies in 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 Asmallworld.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential warning signs with Asmallworld, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 4 other warning signs we've identified .

You can also see our analysis of Asmallworld's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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

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.