Industry Analysts Just Made A Meaningful Upgrade To Their Komplett ASA (OB:KOMPL) Revenue Forecasts

Komplett ASA (OB:KOMPL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Komplett from its twin analysts is for revenues of kr14b in 2022 which, if met, would be a substantial 31% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting kr4.05 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of kr11b and earnings per share (EPS) of kr3.99 in 2022. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

Check out our latest analysis for Komplett

Even though revenue forecasts increased, the consensus price target fell 6.0% to kr79.00, perhaps suggesting that the analysts have become more pessimistic about the lack of earnings growth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Komplett analyst has a price target of kr80.00 per share, while the most pessimistic values it at kr78.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Komplett's past performance and to peers in the same industry. It's clear from the latest estimates that Komplett's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 11% p.a. 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 22% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Komplett is expected to grow much faster than its 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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Komplett's future valuation. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Komplett.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential risk with Komplett, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other risk we've identified .

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.