One Gofore Oyj (HEL:GOFORE) Analyst Just Lifted Their Revenue Forecasts By A Notable 12%

Celebrations may be in order for Gofore Oyj (HEL:GOFORE) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Gofore Oyj will make substantially more sales than they'd previously expected.

After this upgrade, Gofore Oyj's sole analyst is now forecasting revenues of €183m in 2023. This would be a substantial 45% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 44% to €1.04. Before this latest update, the analyst had been forecasting revenues of €163m and earnings per share (EPS) of €1.05 in 2023. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Gofore Oyj

It may not be a surprise to see that the analyst has reconfirmed their price target of €26.00, implying that the uplift in sales is not expected to greatly contribute to Gofore Oyj's valuation in the near term.

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. The analyst is definitely expecting Gofore Oyj's growth to accelerate, with the forecast 35% annualised growth to the end of 2023 ranking favourably alongside historical growth of 26% 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 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gofore Oyj is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with the analyst holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gofore Oyj.

Better yet, our automated discounted cash flow calculation (DCF) suggests Gofore Oyj could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.