This Analyst Just Wrote A Brand New Outlook For secunet Security Networks Aktiengesellschaft's (ETR:YSN) Business

secunet Security Networks Aktiengesellschaft (ETR:YSN) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory 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. The stock price has risen 8.4% to €298 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from secunet Security Networks' solitary analyst is for revenues of €330m in 2021 which - if met - would reflect a meaningful 16% increase on its sales over the past 12 months. Statutory earnings per share are presumed to grow 14% to €6.21. Prior to this update, the analyst had been forecasting revenues of €269m and earnings per share (EPS) of €4.62 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 secunet Security Networks

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. It's pretty clear that there is an expectation that secunet Security Networks' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.4% per year. Even after the forecast slowdown in growth, it seems obvious that secunet Security Networks is also expected 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. More bullish expectations could be a signal for investors to take a closer look at secunet Security Networks.

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 secunet Security Networks going out as far as 2025, 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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