Broker Revenue Forecasts For Enefit Green AS (TAL:EGR1T) Are Surging Higher

Shareholders in Enefit Green AS (TAL:EGR1T) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Enefit Green will make substantially more sales than they'd previously expected.

After this upgrade, Enefit Green's dual analysts are now forecasting revenues of €248m in 2022. This would be a decent 14% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €215m in 2022. It looks like there's been a clear increase in optimism around Enefit Green, given the solid increase in revenue forecasts.

See our latest analysis for Enefit Green

The consensus price target rose 5.3% to €4.95, with the analysts clearly more optimistic about Enefit Green's prospects following this update. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Enefit Green, with the most bullish analyst valuing it at €5.00 and the most bearish at €4.90 per share. This is a very narrow spread of estimates, implying either that Enefit Green is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Enefit Green's revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2022 being well below the historical 63% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.0% annually. Even after the forecast slowdown in growth, it seems obvious that Enefit Green is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Enefit Green.

But wait - there's more! At least one of Enefit Green's dual analysts has provided estimates 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.

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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.