News Flash: One Analyst Just Made A Substantial Upgrade To Their Aktieselskabet Schouw & Co. (CPH:SCHO) Forecasts

Shareholders in Aktieselskabet Schouw & Co. (CPH:SCHO) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term 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 latest consensus from Aktieselskabet Schouw's solo analyst is for revenues of kr.29b in 2022, which would reflect a meaningful 13% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to shrink 4.8% to kr.41.14 in the same period. Previously, the analyst had been modelling revenues of kr.26b and earnings per share (EPS) of kr.37.41 in 2022. The forecasts seem more optimistic now, with a nice gain to revenue and a small increase to earnings per share estimates.

See our latest analysis for Aktieselskabet Schouw

Despite these upgrades, the analyst has not made any major changes to their price target of kr.640, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aktieselskabet Schouw's past performance and to peers in the same industry. It's clear from the latest estimates that Aktieselskabet Schouw's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 8.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Aktieselskabet Schouw to grow faster than 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. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than 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 Aktieselskabet Schouw.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.