Analysts Are Betting On ECO Animal Health Group plc (LON:EAH) With A Big Upgrade This Week

Celebrations may be in order for ECO Animal Health Group plc (LON:EAH) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that ECO Animal Health Group will make substantially more sales than they'd previously expected. The stock price has risen 8.7% to UK£3.71 over the past week, suggesting investors are becoming more optimistic. Could this big upgrade push the stock even higher?

Following the upgrade, the current consensus from ECO Animal Health Group's dual analysts is for revenues of UK£101m in 2021 which - if met - would reflect a solid 17% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£91m in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for ECO Animal Health Group

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting ECO Animal Health Group's growth to accelerate, with the forecast 17% annualised growth to the end of 2021 ranking favourably alongside historical growth of 10% 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 7.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ECO Animal Health Group to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for ECO Animal Health Group this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at ECO Animal Health Group.

Analysts are clearly in love with ECO Animal Health Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 2 other flags 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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