Growth Investors: Industry Analysts Just Upgraded Their ProCredit Holding AG (ETR:PCZ) Revenue Forecasts By 12%

ProCredit Holding AG (ETR:PCZ) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that ProCredit Holding will make substantially more sales than they'd previously expected. The stock price has risen 7.4% to €9.56 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for ProCredit Holding from its three analysts is for revenues of €431m in 2024 which, if met, would be a reasonable 8.0% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €384m of revenue in 2024. It looks like there's been a clear increase in optimism around ProCredit Holding, given the substantial gain in revenue forecasts.

View our latest analysis for ProCredit Holding

There was no particular change to the consensus price target of €17.57, with ProCredit Holding's latest outlook seemingly not enough to result in a change of valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of ProCredit Holding'shistorical trends, as the 8.0% annualised revenue growth to the end of 2024 is roughly in line with the 7.0% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.3% per year. So although ProCredit Holding is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at ProCredit Holding.

Want more information? We have analyst estimates for ProCredit Holding going out to 2026, 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.