Growth Investors: Industry Analysts Just Upgraded Their Orion Oyj (HEL:ORNBV) Revenue Forecasts By 13%

Orion Oyj (HEL:ORNBV) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the seven analysts covering Orion Oyj are now predicting revenues of €1.2b in 2021. If met, this would reflect a notable 8.4% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €1.1b of revenue in 2021. It looks like there's been a clear increase in optimism around Orion Oyj, given the nice gain to revenue forecasts.

See our latest analysis for Orion Oyj

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. The analysts are definitely expecting Orion Oyj's growth to accelerate, with the forecast 8.4% growth ranking favourably alongside historical growth of 0.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Orion Oyj is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Orion Oyj.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Orion Oyj that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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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