Broker Revenue Forecasts For NSE S.A. (EPA:ALNSE) Are Surging Higher

NSE S.A. (EPA:ALNSE) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that NSE will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on NSE too, with the stock up 13% to €25.50 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the sole analyst covering NSE is now predicting revenues of €102m in 2024. If met, this would reflect a substantial 33% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to climb 17% to €1.52. Previously, the analyst had been modelling revenues of €87m and earnings per share (EPS) of €1.49 in 2024. The forecasts seem more optimistic now, with a decent improvement in revenue and a slight bump in earnings per share estimates.

View our latest analysis for NSE

It will come as no surprise to learn that the analyst has increased their price target for NSE 7.8% to €27.80 on the back of these upgrades.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that NSE is forecast to grow faster in the future than it has in the past, with revenues expected to display 33% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.8% annually. So it looks like NSE is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. 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. 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 NSE.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for NSE going out as far as 2026, and you can see them free on our platform here.

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.

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