Industry Analysts Just Made A Notable Upgrade To Their AutoStore Holdings Ltd. (OB:AUTO) Revenue Forecasts

Shareholders in AutoStore Holdings Ltd. (OB:AUTO) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that AutoStore Holdings will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 32% to kr8.81 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

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Following the latest upgrade, the eleven analysts covering AutoStore Holdings provided consensus estimates of US$486m revenue in 2025, which would reflect a definite 8.1% decline on its sales over the past 12 months. Statutory earnings per share are supposed to tumble 27% to US$0.017 in the same period. Before this latest update, the analysts had been forecasting revenues of US$441m and earnings per share (EPS) of US$0.017 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

Check out our latest analysis for AutoStore Holdings

The consensus price target increased 22% to US$0.97, with an improved revenue forecast carrying the promise of a more valuable business, in time. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic AutoStore Holdings analyst has a price target of US$1.49 per share, while the most pessimistic values it at US$0.51. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how think this business will perform. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the AutoStore Holdings' past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 15% by the end of 2025. This indicates a significant reduction from annual growth of 2.1% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 14% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - AutoStore Holdings is expected to lag the wider 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. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower 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 AutoStore Holdings.

Analysts are definitely bullish on AutoStore Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. 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 with high insider ownership.

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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.