Growth Investors: Industry Analysts Just Upgraded Their SSE plc (LON:SSE) Revenue Forecasts By 28%

Celebrations may be in order for SSE plc (LON:SSE) shareholders, with the analysts 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.

After the upgrade, the 14 analysts covering SSE are now predicting revenues of UK£13b in 2025. If met, this would reflect a major 27% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to rise 3.0% to UK£1.61. Prior to this update, the analysts had been forecasting revenues of UK£10b and earnings per share (EPS) of UK£1.61 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for SSE

It may not be a surprise to see that the analysts have reconfirmed their price target of UK£21.82, implying that the uplift in sales is not expected to greatly contribute to SSE's valuation in the near term.

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 analysts are definitely expecting SSE's growth to accelerate, with the forecast 61% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% 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 2.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SSE to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SSE.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for SSE going out to 2027, and you can see them free on our platform here..

You can also see our analysis of SSE's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.