Need To Know: One Analyst Is Much More Bullish On Altheora SA (EPA:ALORA) Revenues

Celebrations may be in order for Altheora SA (EPA:ALORA) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 9.2% over the past week, closing at €1.97. Could this big upgrade push the stock even higher?

After this upgrade, Altheora's solitary analyst is now forecasting revenues of €32m in 2021. This would be a major 26% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting €0.046 in per-share earnings. Prior to this update, the analyst had been forecasting revenues of €29m and earnings per share (EPS) of €0.045 in 2021. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Altheora

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. The analyst is definitely expecting Altheora's growth to accelerate, with the forecast 26% annualised growth to the end of 2021 ranking favourably alongside historical growth of 0.3% 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 5.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Altheora is expected to grow much faster than its industry.

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. 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 Altheora.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Altheora going out as far as 2023, 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 that insiders are buying.

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