One Analyst's Revenue Estimates For Totens Sparebank (OB:TOTG) Are Surging Higher

Shareholders in Totens Sparebank (OB:TOTG) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. 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 the upgrade, the most recent consensus for Totens Sparebank from its lone analyst is for revenues of kr572m in 2023 which, if met, would be a notable 14% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 22% to kr24.26. Before this latest update, the analyst had been forecasting revenues of kr453m and earnings per share (EPS) of kr23.03 in 2023. The forecasts seem more optimistic now, with a very substantial lift in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for Totens Sparebank

With these upgrades, we're not surprised to see that the analyst has lifted their price target 9.3% to kr235 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. It's clear from the latest estimates that Totens Sparebank's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 4.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Totens Sparebank is expected to grow much faster than its 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, the analyst 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Totens Sparebank.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have analyst estimates for Totens Sparebank going out as far as 2025, 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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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.