Party Time: Brokers Just Made Major Increases To Their Oma Säästöpankki Oyj (HEL:OMASP) Earnings Forecasts

Shareholders in Oma Säästöpankki Oyj (HEL:OMASP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 7.5% over the past week, closing at €15.75. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Oma Säästöpankki Oyj's two analysts are now forecasting revenues of €155m in 2021. This would be a sizeable 51% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to climb 19% to €2.38. Prior to this update, the analysts had been forecasting revenues of €137m and earnings per share (EPS) of €1.89 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Oma Säästöpankki Oyj

With these upgrades, we're not surprised to see that the analysts have lifted their price target 19% to €18.50 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Oma Säästöpankki Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 128% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 11% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Oma Säästöpankki Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Oma Säästöpankki Oyj could be worth investigating further.

Analysts are definitely bullish on Oma Säästöpankki Oyj, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other risk 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. 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.
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