Upgrade: Analysts Just Made A Sizeable Increase To Their Oma Säästöpankki Oyj (HEL:OMASP) Forecasts

Oma Säästöpankki Oyj (HEL:OMASP) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The stock price has risen 5.0% to €21.90 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from Oma Säästöpankki Oyj's single analyst is for revenues of €245m in 2023 which - if met - would reflect a substantial 35% increase on its sales over the past 12 months. Per-share earnings are expected to leap 42% to €3.38. Prior to this update, the analyst had been forecasting revenues of €216m and earnings per share (EPS) of €2.67 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Oma Säästöpankki Oyj

It will come as no surprise to learn that the analyst has increased their price target for Oma Säästöpankki Oyj 9.6% to €28.50 on the back of these upgrades.

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. The analyst is definitely expecting Oma Säästöpankki Oyj's growth to accelerate, with the forecast 81% annualised growth to the end of 2023 ranking favourably alongside historical growth of 17% per annum 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 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Oma Säästöpankki Oyj is expected to grow much faster than its 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. 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.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Oma Säästöpankki Oyj that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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.