Need To Know: Analysts Are Much More Bullish On Fasadgruppen Group AB (publ) (STO:FG) Revenues

Celebrations may be in order for Fasadgruppen Group AB (publ) (STO:FG) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Fasadgruppen Group will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Fasadgruppen Group's two analysts is for revenues of kr4.1b in 2022, which would reflect a substantial 52% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 64% to kr6.27. Before this latest update, the analysts had been forecasting revenues of kr3.5b and earnings per share (EPS) of kr6.20 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.

See our latest analysis for Fasadgruppen Group

Even though revenue forecasts increased, there was no change to the consensus price target of kr222, suggesting the analysts are focused on earnings as the driver of value creation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Fasadgruppen Group analyst has a price target of kr240 per share, while the most pessimistic values it at kr214. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Fasadgruppen Group's growth to accelerate, with the forecast 52% annualised growth to the end of 2022 ranking favourably alongside historical growth of 41% 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 9.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fasadgruppen Group is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Fasadgruppen Group.

Analysts are definitely bullish on Fasadgruppen Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other concerns 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.