Medistim ASA (OB:MEDI) Released Earnings Last Week And Analysts Lifted Their Price Target To kr255

Shareholders of Medistim ASA (OB:MEDI) will be pleased this week, given that the stock price is up 15% to kr263 following its latest second-quarter results. It was a workmanlike result, with revenues of kr169m coming in 3.7% ahead of expectations, and statutory earnings per share of kr5.67, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Medistim after the latest results.

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After the latest results, the twin analysts covering Medistim are now predicting revenues of kr666.0m in 2025. If met, this would reflect a satisfactory 6.0% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr647.0m and earnings per share (EPS) of kr6.89 in 2025. The thing that stands out most is that, while there's been a slight bump in revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

Check out our latest analysis for Medistim

Additionally, the consensus price target for Medistim rose 11% to kr255, showing a clear increase in optimism from the the analysts involved.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Medistim'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 7.1% annually. So it's pretty clear that Medistim is forecast to grow substantially faster than its industry.

The Bottom Line

The highlight for us was that the analysts increased their revenue forecasts for Medistim next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

At least one of Medistim's twin analysts has provided estimates out to 2027, which can be seen for free on our platform here.

You still need to take note of risks, for example - Medistim has 1 warning sign we think you should be aware of.

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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.