Hexatronic Group AB (publ) (STO:HTRO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
After this upgrade, Hexatronic Group's three analysts are now forecasting revenues of kr5.8b in 2022. This would be a substantial 37% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing kr5.0b of revenue in 2022. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Hexatronic Group's rate of growth is expected to accelerate meaningfully, with the forecast 53% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 23% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 31% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Hexatronic Group to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Hexatronic Group this year. Analysts also expect revenues 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 Hexatronic Group.
Analysts are definitely bullish on Hexatronic Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 3 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.
Valuation is complex, but we're helping make it simple.
Find out whether Hexatronic Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Hexatronic Group AB (publ), together with its subsidiaries, designs, develops, manufactures, markets, and sells fiber communication solutions in Sweden, Rest of Europe, North America, and internationally.
Very undervalued with outstanding track record.