Brokers Are Upgrading Their Views On Munters Group AB (publ) (STO:MTRS) With These New Forecasts

Munters Group AB (publ) (STO:MTRS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Munters Group too, with the stock up 21% to kr133 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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Following the upgrade, the most recent consensus for Munters Group from its five analysts is for revenues of kr17b in 2025 which, if met, would be a reasonable 4.7% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plummet 31% to kr3.55 in the same period. Previously, the analysts had been modelling revenues of kr15b and earnings per share (EPS) of kr3.21 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 Munters Group

Despite these upgrades, the analysts have not made any major changes to their price target of kr174, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Munters Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.3% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Compare this to the 12 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.5% per year. Factoring in the forecast slowdown in growth, it looks like Munters Group is forecast to grow at about the same rate as the wider 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 this year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Munters Group could be a good candidate for more research.

Better yet, our automated discounted cash flow calculation (DCF) suggests Munters Group could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.