News Flash: Analysts Just Made A Notable Upgrade To Their The Platform Group AG (ETR:TPG) Forecasts

Celebrations may be in order for The Platform Group AG (ETR:TPG) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. 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. The market may be pricing in some blue sky too, with the share price gaining 10% to €10.85 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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Following the upgrade, the most recent consensus for Platform Group from its seven analysts is for revenues of €684m in 2025 which, if met, would be a substantial 29% increase on its sales over the past 12 months. Statutory earnings per share are supposed to shrink 3.9% to €1.60 in the same period. Before this latest update, the analysts had been forecasting revenues of €621m and earnings per share (EPS) of €1.02 in 2025. 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 Platform Group

It will come as no surprise to learn that the analysts have increased their price target for Platform Group 16% to €17.50 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Platform Group's revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2025 being well below the historical 47% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. So it's pretty clear that, while Platform Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Platform Group could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Platform Group analysts - going out to 2027, 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 with high insider ownership.

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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.