News Flash: One Analyst Just Made A Notable Upgrade To Their Melhus Sparebank (OB:MELG) Forecasts

Melhus Sparebank (OB:MELG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Melhus Sparebank will make substantially more sales than they'd previously expected.

Following the latest upgrade, Melhus Sparebank's solo analyst currently expects revenues in 2024 to be kr320m, approximately in line with the last 12 months. Statutory earnings per share are anticipated to descend 17% to kr13.14 in the same period. Previously, the analyst had been modelling revenues of kr259m and earnings per share (EPS) of kr12.76 in 2024. The most recent forecasts are noticeably more optimistic, with a sizeable gain to revenue estimates and a lift to earnings per share as well.

View our latest analysis for Melhus Sparebank

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of kr162, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 1.8% by the end of 2024. This indicates a significant reduction from annual growth of 9.5% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Melhus Sparebank is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Melhus Sparebank.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, 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.

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