This Just In: Analysts Are Boosting Their MilDef Group AB (publ) (STO:MILDEF) Outlook for Next Year

MilDef Group AB (publ) (STO:MILDEF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 4.2% to kr104 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from MilDef Group's dual analysts is for revenues of kr1.9b in 2025, which would reflect a huge 63% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 163% to kr3.61. Before this latest update, the analysts had been forecasting revenues of kr1.5b and earnings per share (EPS) of kr2.92 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for MilDef Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to kr112 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MilDef Group's past performance and to peers in the same industry. The analysts are definitely expecting MilDef Group's growth to accelerate, with the forecast 48% annualised growth to the end of 2025 ranking favourably alongside historical growth of 29% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MilDef Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at MilDef Group.

Better yet, our automated discounted cash flow calculation (DCF) suggests MilDef Group could be moderately undervalued. You can learn more about our valuation methodology on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.