This Just In: Analysts Are Boosting Their Harvia Oyj (HEL:HARVIA) Outlook for This Year

Shareholders in Harvia Oyj (HEL:HARVIA) 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. Harvia Oyj has also found favour with investors, with the stock up a noteworthy 27% to €31.70 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After this upgrade, Harvia Oyj's two analysts are now forecasting revenues of €131m in 2021. This would be a decent 20% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 29% to €1.07. Prior to this update, the analysts had been forecasting revenues of €118m and earnings per share (EPS) of €0.89 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Harvia Oyj

It will come as no surprise to learn that the analysts have increased their price target for Harvia Oyj 39% to €32.75 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Harvia Oyj at €33.00 per share, while the most bearish prices it at €32.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Harvia Oyj is an easy business to forecast or the underlying assumptions are obvious.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Harvia Oyj's growth to accelerate, with the forecast 20% growth ranking favourably alongside historical growth of 15% 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 8.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Harvia Oyj is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Harvia Oyj.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Harvia Oyj going out as far as 2024, and you can see them free on our platform here.

You can also see our analysis of Harvia Oyj's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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