Need To Know: One Analyst Is Much More Bullish On Totens Sparebank (OB:TOTG) Revenues

Celebrations may be in order for Totens Sparebank (OB:TOTG) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Totens Sparebank will make substantially more sales than they'd previously expected.

Following this upgrade, Totens Sparebank's one analyst are forecasting 2022 revenues to be kr475m, approximately in line with the last 12 months. Statutory earnings per share are forecast to be kr18.93, approximately in line with the last 12 months. Before this latest update, the analyst had been forecasting revenues of kr385m and earnings per share (EPS) of kr19.11 in 2022. 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 Totens Sparebank

It may not be a surprise to see that the analyst has reconfirmed their price target of kr230, implying that the uplift in sales is not expected to greatly contribute to Totens Sparebank's valuation in the near term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 2.5% by the end of 2022. This indicates a significant reduction from annual growth of 3.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Totens Sparebank is expected to lag 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 the analyst holding earnings per share steady, in line with previous estimates. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. 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 Totens 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 2024, 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 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.