Need To Know: Analysts Are Much More Bullish On Strax AB (publ) (STO:STRAX) Revenues

Strax AB (publ) (STO:STRAX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Strax will make substantially more sales than they'd previously expected.

After this upgrade, Strax's dual analysts are now forecasting revenues of €142m in 2021. This would be a huge 20% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €126m in 2021. It looks like there's been a clear increase in optimism around Strax, given the nice increase in revenue forecasts.

Check out our latest analysis for Strax

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Strax's growth to accelerate, with the forecast 20% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.7% 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 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Strax is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Strax this year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Strax.

Analysts are clearly in love with Strax at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. You can learn more, and discover the 1 other risk we've identified, for free 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 that insiders are buying.

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