New Forecasts: Here's What One Analyst Thinks The Future Holds For SCHUMAG Aktiengesellschaft (FRA:SCM)

SCHUMAG Aktiengesellschaft (FRA:SCM) shareholders will have a reason to smile today, with the covering analyst 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.

After this upgrade, SCHUMAG's lone analyst is now forecasting revenues of €39m in 2021. This would be a meaningful 19% improvement in sales compared to the last 12 months. Yet before this consensus update, the analyst had been forecasting revenues of €33m and losses of €0.35 per share in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for SCHUMAG

Additionally, the consensus price target for SCHUMAG increased 33% to €2.00, showing a clear increase in optimism from the analyst involved.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that SCHUMAG is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2021. If achieved, this would be a much better result than the 5.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.9% annually. Not only are SCHUMAG's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the consensus now expects SCHUMAG to become profitable this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SCHUMAG.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential risks with SCHUMAG, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .

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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