Rainbows and Unicorns: Viscom AG (ETR:V6C) Analysts Just Became A Lot More Optimistic

Shareholders in Viscom AG (ETR:V6C) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 4.8% to €9.80 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from Viscom's two analysts is for revenues of €115m in 2023 which - if met - would reflect a sizeable 25% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 151% to €0.70. Previously, the analysts had been modelling revenues of €101m and earnings per share (EPS) of €0.55 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Viscom

It will come as no surprise to learn that the analysts have increased their price target for Viscom 7.5% to €14.25 on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Viscom analyst has a price target of €15.80 per share, while the most pessimistic values it at €12.70. This is a very narrow spread of estimates, implying either that Viscom is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Viscom is forecast to grow faster in the future than it has in the past, with revenues expected to display 25% annualised growth until the end of 2023. If achieved, this would be a much better result than the 3.6% 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 13% annually. So it looks like Viscom is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Viscom.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Viscom 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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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.