Industry Analysts Just Upgraded Their Stillfront Group AB (publ) (STO:SF) Revenue Forecasts By 10%

Stillfront Group AB (publ) (STO:SF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Stillfront Group has also found favour with investors, with the stock up an impressive 15% to kr1,026 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the four analysts covering Stillfront Group are now predicting revenues of kr6.0b in 2021. If met, this would reflect a substantial 59% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 95% to kr31.96. Prior to this update, the analysts had been forecasting revenues of kr5.5b and earnings per share (EPS) of kr30.94 in 2021. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Stillfront Group

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to kr1,318 per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Stillfront Group at kr1,450 per share, while the most bearish prices it at kr1,162. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Stillfront Group's rate of growth is expected to accelerate meaningfully, with the forecast 59% revenue growth noticeably faster than its historical growth of 48% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Stillfront Group is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Stillfront Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Stillfront Group analysts - going out to 2024, and you can see them 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 that insiders are buying.

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