Bullish: Analysts Just Made A Decent Upgrade To Their flatexDEGIRO AG (ETR:FTK) Forecasts

Shareholders in flatexDEGIRO AG (ETR:FTK) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from flatexDEGIRO's six analysts is for revenues of €469m in 2021, which would reflect a sizeable 83% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 137% to €5.17. Prior to this update, the analysts had been forecasting revenues of €419m and earnings per share (EPS) of €4.37 in 2021. 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 flatexDEGIRO

It will come as no surprise to learn that the analysts have increased their price target for flatexDEGIRO 13% to €122 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values flatexDEGIRO at €146 per share, while the most bearish prices it at €100.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the flatexDEGIRO's past performance and to peers in the same industry. The analysts are definitely expecting flatexDEGIRO's growth to accelerate, with the forecast 83% annualised growth to the end of 2021 ranking favourably alongside historical growth of 21% 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 3.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect flatexDEGIRO to grow 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, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, flatexDEGIRO could be worth investigating further.

Better yet, our automated discounted cash flow calculation (DCF) suggests flatexDEGIRO could be moderately undervalued. You can learn more about our valuation methodology 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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