New Forecasts: Here's What One Analyst Thinks The Future Holds For Viva Wine Group AB (STO:VIVA)

Celebrations may be in order for Viva Wine Group AB (STO:VIVA) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

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Following the upgrade, the latest consensus from Viva Wine Group's solitary analyst is for revenues of kr5.6b in 2025, which would reflect a sizeable 32% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 30% to kr2.23. Previously, the analyst had been modelling revenues of kr4.4b and earnings per share (EPS) of kr2.16 in 2025. Sentiment certainly seems to have improved in recent times, with a considerable lift to revenue and a slight bump in earnings per share estimates.

View our latest analysis for Viva Wine Group

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of kr54.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. It's clear from the latest estimates that Viva Wine Group's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 5.0% p.a. 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 4.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Viva Wine Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected 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 Viva Wine Group.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

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 with high insider ownership.

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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.