New Forecasts: Here's What Analysts Think The Future Holds For Comet Holding AG (VTX:COTN)

Comet Holding AG (VTX:COTN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Comet Holding has also found favour with investors, with the stock up a noteworthy 13% to CHF298 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the five analysts covering Comet Holding are now predicting revenues of CHF498m in 2021. If met, this would reflect a huge 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 93% to CHF6.86. Prior to this update, the analysts had been forecasting revenues of CHF450m and earnings per share (EPS) of CHF6.07 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Comet Holding

With these upgrades, we're not surprised to see that the analysts have lifted their price target 17% to CHF316 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Comet Holding at CHF330 per share, while the most bearish prices it at CHF257. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Comet Holding's growth to accelerate, with the forecast 26% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.2% 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 8.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Comet Holding is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Comet Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Comet Holding going out to 2023, 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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