Brokers Are Upgrading Their Views On Ina Invest Holding AG (VTX:INA) With These New Forecasts

Ina Invest Holding AG (VTX:INA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Ina Invest Holding from its two analysts is for revenues of CHF28m in 2022 which, if met, would be a sizeable 33% increase on its sales over the past 12 months. Per-share earnings are expected to grow 13% to CHF0.80. Before this latest update, the analysts had been forecasting revenues of CHF18m and earnings per share (EPS) of CHF0.42 in 2022. 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.

View our latest analysis for Ina Invest Holding

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CHF21.50, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Ina Invest Holding at CHF22.00 per share, while the most bearish prices it at CHF21.00. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Ina Invest Holding's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Ina Invest Holding's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 33% growth on an annualised basis. This is compared to a historical growth rate of 608% over the past year. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 6.1% annually. So it's clear that despite the slowdown in growth, Ina Invest Holding is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Ina Invest Holding.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Ina Invest Holding going out as far as 2024, and you can see them 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.