One Analyst's Revenue Estimates For Toivo Group Oyj (HEL:TOIVO) Are Surging Higher

Toivo Group Oyj (HEL:TOIVO) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Toivo Group Oyj will make substantially more sales than they'd previously expected.

After the upgrade, the one analyst covering Toivo Group Oyj is now predicting revenues of €62m in 2025. If met, this would reflect a huge 45% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of €56m in 2025. It looks like there's been a clear increase in optimism around Toivo Group Oyj, given the solid increase in revenue forecasts.

See our latest analysis for Toivo Group Oyj

There was no particular change to the consensus price target of €1.25, with Toivo Group Oyj's latest outlook seemingly not enough to result in a change of valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Toivo Group Oyj's revenue growth is expected to slow, with the forecast 35% annualised growth rate until the end of 2025 being well below the historical 49% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.9% annually. So it's pretty clear that, while Toivo Group Oyj's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for next year. The analyst also expects revenues to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Toivo Group Oyj.

The covering analyst is definitely bullish on Toivo Group Oyj, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 other concerns we've identified .

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 backed by insiders.

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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.