News Flash: Analysts Just Made A Notable Upgrade To Their DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) Forecasts

Celebrations may be in order for DATA MODUL Aktiengesellschaft, Produktion und Vertrieb von elektronischen Systemen (ETR:DAM) 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.

After the upgrade, the single analyst covering DATA MODUL Produktion und Vertrieb von elektronischen Systemen is now predicting revenues of €270m in 2022. If met, this would reflect a satisfactory 3.2% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to be €4.86, approximately in line with the last 12 months. Before this latest update, the analyst had been forecasting revenues of €240m and earnings per share (EPS) of €3.01 in 2022. 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.

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With these upgrades, we're not surprised to see that the analyst has lifted their price target 31% to €77.00 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 3.2% annualised growth until the end of 2022. If achieved, this would be a much better result than the 1.5% 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 11% annually for the foreseeable future. So although DATA MODUL Produktion und Vertrieb von elektronischen Systemen's revenue growth is expected to improve, it is still expected to grow slower than the 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. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at DATA MODUL Produktion und Vertrieb von elektronischen Systemen.

Better yet, our automated discounted cash flow calculation (DCF) suggests DATA MODUL Produktion und Vertrieb von elektronischen Systemen could be moderately undervalued. You can learn more about our valuation methodology 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.