Need To Know: One Analyst Is Much More Bullish On Logwin AG (ETR:TGHN) Revenues

Celebrations may be in order for Logwin AG (ETR:TGHN) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Logwin will make substantially more sales than they'd previously expected.

Following the latest upgrade, the lone analyst covering Logwin provided consensus estimates of €1.9b revenue in 2022, which would reflect an uneasy 17% decline on its sales over the past 12 months. Statutory earnings per share are supposed to fall 14% to €22.65 in the same period. Prior to this update, the analyst had been forecasting revenues of €1.7b and earnings per share (EPS) of €22.42 in 2022. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Logwin

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Logwin's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 17% by the end of 2022. This indicates a significant reduction from annual growth of 13% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 2.5% per year. The forecasts do look bearish for Logwin, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. Notably, the analyst also upgraded their revenue estimates, with sales performing well although Logwin's revenue growth is expected to trail that of the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Logwin.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Logwin that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.