Bullish: This Analyst Just Lifted Their Zaptec AS (OB:ZAP) Outlook For This Year

Celebrations may be in order for Zaptec AS (OB:ZAP) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Zaptec from its solo analyst is for revenues of kr846m in 2022 which, if met, would be a huge 126% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting kr1.50 in per-share earnings. Prior to this update, the analyst had been forecasting revenues of kr783m and earnings per share (EPS) of kr1.31 in 2022. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a decent improvement in earnings per share in particular.

See our latest analysis for Zaptec

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Zaptec's growth to accelerate, with the forecast 126% annualised growth to the end of 2022 ranking favourably alongside historical growth of 39% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Zaptec 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. With a serious upgrade to expectations, it might be time to take another look at Zaptec.

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.