Analyst Forecasts For Enzymatica AB (STO:ENZY) Are Surging Higher

Enzymatica AB (STO:ENZY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Enzymatica's dual analysts is for revenues of kr200m in 2021 which - if met - would reflect a major 120% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting kr0.23 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of kr181m and earnings per share (EPS) of kr0.10 in 2021. 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.

View our latest analysis for Enzymatica

It will come as no surprise to learn that the analysts have increased their price target for Enzymatica 38% to US$2.90 on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Enzymatica's rate of growth is expected to accelerate meaningfully, with the forecast 120% revenue growth noticeably faster than its historical growth of 21% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Enzymatica 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. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Enzymatica could be worth investigating further.

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 2022, which can be seen 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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