New Forecasts: Here's What One Analyst Thinks The Future Holds For Incap Oyj (HEL:ICP1V)

Incap Oyj (HEL:ICP1V) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 15% to €36.25 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the latest consensus from Incap Oyj's single analyst is for revenues of €132m in 2021, which would reflect a major 23% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of €118m in 2021. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Incap Oyj

The consensus price target rose 41% to €38.00, with the analyst clearly more optimistic about Incap Oyj's prospects following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Incap Oyj's growth to accelerate, with the forecast 32% annualised growth to the end of 2021 ranking favourably alongside historical growth of 22% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Incap Oyj to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth 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. 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 Incap Oyj.

The covering analyst is clearly in love with Incap Oyj at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. You can learn more, and discover the 2 other warning signs we've identified, for 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. 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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