New Forecasts: Here's What One Analyst Thinks The Future Holds For DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM)

DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from DATA MODUL Produktion und Vertrieb von elektronischen Systemen's single analyst is for revenues of €235m in 2022 which - if met - would reflect a notable 12% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 6.8% to €2.81. Prior to this update, the analyst had been forecasting revenues of €212m and earnings per share (EPS) of €2.68 in 2022. The forecasts seem more optimistic now, with a solid increase in revenue and a modest lift to earnings per share estimates.

Check out our latest analysis for DATA MODUL Produktion und Vertrieb von elektronischen Systemen

Despite these upgrades, the analyst has not made any major changes to their price target of €59.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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. One thing stands out from these estimates, which is that DATA MODUL Produktion und Vertrieb von elektronischen Systemen is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2022. If achieved, this would be a much better result than the 3.2% 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 12% annually. So it looks like DATA MODUL Produktion und Vertrieb von elektronischen Systemen is expected to grow at about the same rate as 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. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at DATA MODUL Produktion und Vertrieb von elektronischen Systemen.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for 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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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.