Party Time: One Broker Just Made Major Increases To Their Fashionette AG (ETR:FSNT) Earnings Forecast

Celebrations may be in order for Fashionette AG (ETR:FSNT) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The stock price has risen 9.2% to €34.40 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Fashionette's single analyst is now forecasting revenues of €151m in 2021. This would be a substantial 90% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 32% to €0.37. Previously, the analyst had been modelling revenues of €126m and earnings per share (EPS) of €0.30 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 Fashionette

With these upgrades, we're not surprised to see that the analyst has lifted their price target 19% to €63.00 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fashionette's past performance and to peers in the same industry. The analyst is definitely expecting Fashionette's growth to accelerate, with the forecast 90% annualised growth to the end of 2021 ranking favourably alongside historical growth of 15% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 26% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Fashionette 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Fashionette.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Fashionette going out as far as 2023, 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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