M.O.B.A. Network AB (publ)'s (STO:MOBA) Sole Analyst Just Made A Substantial Upgrade To Their Forecasts

Shareholders in M.O.B.A. Network AB (publ) (STO:MOBA) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 7.5% over the past week, closing at kr17.25. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After this upgrade, M.O.B.A. Network's solo analyst is now forecasting revenues of kr355m in 2023. This would be a meaningful 16% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 87% to kr2.00. Prior to this update, the analyst had been forecasting revenues of kr302m and earnings per share (EPS) of kr1.00 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for M.O.B.A. Network

It will come as no surprise to learn that the analyst has increased their price target for M.O.B.A. Network 33% to kr32.00 on the back of these upgrades.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that M.O.B.A. Network's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2023 being well below the historical 91% p.a. growth over the last three years. Compare this to the 16 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 15% per year. Factoring in the forecast slowdown in growth, it looks like M.O.B.A. Network is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for next year, expecting improving business conditions. 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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, M.O.B.A. Network could be worth investigating further.

The covering analyst is definitely bullish on M.O.B.A. Network, 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 2 other risks 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.

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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.