News Flash: Analysts Just Made A Captivating Upgrade To Their Supreme Plc (LON:SUP) Forecasts

Shareholders in Supreme Plc (LON:SUP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Supreme has also found favour with investors, with the stock up a noteworthy 12% to UK£1.14 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for Supreme from its twin analysts is for revenues of UK£194m in 2024 which, if met, would be a sizeable 25% increase on its sales over the past 12 months. Per-share earnings are expected to climb 15% to UK£0.12. Before this latest update, the analysts had been forecasting revenues of UK£161m and earnings per share (EPS) of UK£0.094 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Supreme

With these upgrades, we're not surprised to see that the analysts have lifted their price target 8.3% to UK£1.95 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Supreme analyst has a price target of UK£2.00 per share, while the most pessimistic values it at UK£1.90. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that Supreme's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Supreme is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Supreme could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Supreme 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 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.