New Forecasts: Here's What One Analyst Thinks The Future Holds For Totens Sparebank (OB:TOTG)

Totens Sparebank (OB:TOTG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

After the upgrade, the consensus from Totens Sparebank's solitary analyst is for revenues of kr407m in 2021, which would reflect a perceptible 2.4% decline in sales compared to the last year of performance. Per-share earnings are expected to accumulate 3.0% to kr17.27. Before this latest update, the analyst had been forecasting revenues of kr327m and earnings per share (EPS) of kr16.66 in 2021. The forecasts seem more optimistic now, with a sizeable gain to revenue and a small increase to earnings per share estimates.

View our latest analysis for Totens Sparebank

With these upgrades, we're not surprised to see that the analyst has lifted their price target 8.3% to kr195 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Totens Sparebank's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 3.3% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 4.5% 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 7.4% per year. It's pretty clear that Totens Sparebank's revenues are expected to perform substantially worse than the wider industry.

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, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. 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.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential warning sign with Totens Sparebank, including concerns around earnings quality. You can learn more, and discover the 1 other warning sign 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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