One Sunndal Sparebank (OB:SUNSB) Analyst Just Lifted Their Revenue Forecasts By A Captivating 12%

Sunndal Sparebank (OB:SUNSB) 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 Sunndal Sparebank will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Sunndal Sparebank's lone analyst is for revenues of kr141m in 2022 which - if met - would reflect a notable 11% increase on its sales over the past 12 months. Per-share earnings are expected to jump 38% to kr10.10. Previously, the analyst had been modelling revenues of kr127m and earnings per share (EPS) of kr9.40 in 2022. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Sunndal Sparebank

With these upgrades, we're not surprised to see that the analyst has lifted their price target 5.6% to kr151 per share.

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 period to the end of 2022 brings more of the same, according to the analyst, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So although Sunndal Sparebank is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. They also upgraded their revenue forecasts, although the latest estimates suggest that Sunndal Sparebank will grow in line with the overall 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 the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Sunndal Sparebank.

The covering analyst is definitely bullish on Sunndal Sparebank, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other flags we've identified, 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 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.