New Forecasts: Here's What One Analyst Thinks The Future Holds For Logwin AG (ETR:TGHN)

Shareholders in Logwin AG (ETR:TGHN) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. 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 solitary analyst covering Logwin provided consensus estimates of €1.9b revenue in 2022, which would reflect an uncomfortable 17% decline on its sales over the past 12 months. Before the latest update, the analyst was foreseeing €1.7b of revenue in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for Logwin

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. We would highlight that sales are expected to reverse, with a forecast 17% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 13% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.6% annually for the foreseeable future. So it's pretty clear that Logwin's revenues are expected to shrink faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. The analyst also expects revenues to shrink faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Logwin.

Better yet, our automated discounted cash flow calculation (DCF) suggests Logwin could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.