Industry Analysts Just Upgraded Their Getlink SE (EPA:GET) Revenue Forecasts By 12%

Getlink SE (EPA:GET) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Getlink will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Getlink from its twelve analysts is for revenues of €1.8b in 2023 which, if met, would be a substantial 71% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting €0.94 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of €1.6b and earnings per share (EPS) of €0.86 in 2023. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Getlink

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of €17.69, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Getlink, with the most bullish analyst valuing it at €20.00 and the most bearish at €11.90 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Getlink shareholders.

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 Getlink is forecast to grow faster in the future than it has in the past, with revenues expected to display 54% annualised growth until the end of 2023. 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 6.5% per year. So it looks like Getlink is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Getlink.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Getlink going out to 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.