New Forecasts: Here's What One Analyst Thinks The Future Holds For SSH Communications Security Oyj (HEL:SSH1V)

SSH Communications Security Oyj (HEL:SSH1V) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 7.3% to €2.64 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

After this upgrade, SSH Communications Security Oyj's single analyst is now forecasting revenues of €23m in 2022. This would be a sizeable 43% improvement in sales compared to the last 12 months. However, before this estimates update, the consensus had been expecting revenues of €20m and €0.01 per share in losses. 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 SSH Communications Security Oyj

Additionally, the consensus price target for SSH Communications Security Oyj increased 11% to €3.10, showing a clear increase in optimism from the analyst involved.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that SSH Communications Security Oyj is forecast to grow faster in the future than it has in the past, with revenues expected to display 43% annualised growth until the end of 2022. If achieved, this would be a much better result than the 5.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 18% per year. Not only are SSH Communications Security Oyj's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that there is now an expectation for SSH Communications Security Oyj to become profitable this year, compared to previous expectations of a loss. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SSH Communications Security Oyj.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for SSH Communications Security Oyj going out as far as 2024, and you can see them free on our platform here.

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.