The Evli Oyj (HEL:EVLI) Analyst Just Boosted Their Forecasts By A Substantial Amount

Celebrations may be in order for Evli Oyj (HEL:EVLI) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Evli Oyj from its solitary analyst is for revenues of €123m in 2024 which, if met, would be a reasonable 3.5% increase on its sales over the past 12 months. Statutory earnings per share are presumed to increase 9.2% to €1.79. Prior to this update, the analyst had been forecasting revenues of €104m and earnings per share (EPS) of €1.58 in 2024. 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 Evli Oyj

Despite these upgrades, the analyst has not made any major changes to their price target of €22.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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 Evli Oyj's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2024 being well below the historical 15% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% annually. Factoring in the forecast slowdown in growth, it looks like Evli Oyj is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Evli Oyj.

The covering analyst is definitely bullish on Evli Oyj, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 2 other risks we've identified, for free on our platform here.

We also provide an overview of the Evli Oyj Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.