One Analyst's Earnings Estimates For United Bankers Oyj (HEL:UNITED) Are Surging Higher

United Bankers Oyj (HEL:UNITED) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from United Bankers Oyj's solo analyst is for revenues of €40m in 2021 which - if met - would reflect a decent 17% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 57% to €0.94. Previously, the analyst had been modelling revenues of €36m and earnings per share (EPS) of €0.69 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 United Bankers Oyj

It will come as no surprise to learn that the analyst has increased their price target for United Bankers Oyj 18% to €13.00 on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that United Bankers Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 11% p.a. 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 6.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect United Bankers Oyj to grow faster than the wider 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, United Bankers Oyj could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts 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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