New Forecasts: Here's What Analysts Think The Future Holds For Cicor Technologies Ltd. (VTX:CICN)

Cicor Technologies Ltd. (VTX:CICN) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the one analyst covering Cicor Technologies is now predicting revenues of CHF304m in 2022. If met, this would reflect a huge 27% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to crater 42% to CHF1.42 in the same period. Before this latest update, the analyst had been forecasting revenues of CHF267m and earnings per share (EPS) of CHF1.10 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.

See our latest analysis for Cicor Technologies

Despite these upgrades, the consensus price target fell 7.7% to CHF60.00, perhaps signalling that the uplift in performance is not expected to last.

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. The analyst is definitely expecting Cicor Technologies' growth to accelerate, with the forecast 27% annualised growth to the end of 2022 ranking favourably alongside historical growth of 2.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Cicor Technologies to grow faster 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. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, Cicor Technologies could be one for the watch list.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential risk with Cicor Technologies, 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 1 other risk we've identified .

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.