Rainbows and Unicorns: The KONCAR - Elektroindustrija d.d. (ZGSE:KOEI) Analyst Just Became A Lot More Optimistic

KONCAR - Elektroindustrija d.d. (ZGSE:KOEI) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view 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 7.0% over the past week, closing at €614. Could this big upgrade push the stock even higher?

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Following the upgrade, the most recent consensus for KONCAR - Elektroindustrija d.d from its sole analyst is for revenues of €1.3b in 2025 which, if met, would be a satisfactory 6.6% increase on its sales over the past 12 months. Per-share earnings are expected to swell 16% to €67.37. Prior to this update, the analyst had been forecasting revenues of €1.0b and earnings per share (EPS) of €39.53 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for KONCAR - Elektroindustrija d.d

It will come as no surprise to learn that the analyst has increased their price target for KONCAR - Elektroindustrija d.d 31% to Kn5,978 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on KONCAR - Elektroindustrija d.d, with the most bullish analyst valuing it at Kn7,357 and the most bearish at Kn4,599 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KONCAR - Elektroindustrija d.d's past performance and to peers in the same industry. It's pretty clear that there is an expectation that KONCAR - Elektroindustrija d.d's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.0% per year. So it's pretty clear that, while KONCAR - Elektroindustrija d.d's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Fortunately, the analyst 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, KONCAR - Elektroindustrija d.d could be worth investigating further.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen 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 with high insider ownership.

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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.