Growth Investors: Industry Analysts Just Upgraded Their SpareBank 1 BV (OB:SBVG) Revenue Forecasts By 65%

Shareholders in SpareBank 1 BV (OB:SBVG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for SpareBank 1 BV from its dual analysts is for revenues of kr2.1b in 2021 which, if met, would be a huge 68% increase on its sales over the past 12 months. Statutory earnings per share are supposed to decrease 7.3% to kr4.06 in the same period. Prior to this update, the analysts had been forecasting revenues of kr1.3b and earnings per share (EPS) of kr4.09 in 2021. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

View our latest analysis for SpareBank 1 BV

The consensus price target increased 5.3% to kr50.00, with an improved revenue forecast carrying the promise of a more valuable business, in time.

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 SpareBank 1 BV's growth to accelerate, with the forecast 68% annualised growth to the end of 2021 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SpareBank 1 BV is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SpareBank 1 BV.

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 SpareBank 1 BV going out as far as 2023, 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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