Industry Analysts Just Made A Massive Upgrade To Their Alm. Brand A/S (CPH:ALMB) Revenue Forecasts

Alm. Brand A/S (CPH:ALMB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Alm. Brand will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Alm. Brand's twin analysts is for revenues of kr.9.8b in 2022, which would reflect a major 25% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to reduce 6.5% to kr.3.59 in the same period. Prior to this update, the analysts had been forecasting revenues of kr.5.7b and earnings per share (EPS) of kr.3.59 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Alm. Brand

Analysts increased their price target 8.3% to kr.65.00, perhaps signalling that higher revenues are a strong leading indicator for Alm. Brand's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that Alm. Brand is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2022. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 0.7% per year. Not only are Alm. Brand's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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 analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Alm. Brand.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flag with Alm. Brand, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .

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.