New Forecasts: Here's What One Analyst Thinks The Future Holds For Swedish Logistic Property AB (STO:SLP B)

Swedish Logistic Property AB (STO:SLP B) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that Swedish Logistic Property will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Swedish Logistic Property from its single analyst is for revenues of kr581m in 2023 which, if met, would be a decent 18% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 45% to kr0.63 in the same period. Prior to this update, the analyst had been forecasting revenues of kr472m and earnings per share (EPS) of kr0.65 in 2023. Although sales sentiment looks to be improving, the analyst has made a small dip in per-share earnings estimates, showing a decline in sentiment this week.

See our latest analysis for Swedish Logistic Property

The consensus price target was unchanged at kr33.00, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Swedish Logistic Property, with the most bullish analyst valuing it at kr34.00 and the most bearish at kr32.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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 can infer from the latest estimates that forecasts expect a continuation of Swedish Logistic Property'shistorical trends, as the 40% annualised revenue growth to the end of 2023 is roughly in line with the 41% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.1% annually. So it's pretty clear that Swedish Logistic Property is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest issue in the new estimates is that the analyst has reduced their earnings per share estimates, suggesting business headwinds lay ahead for Swedish Logistic Property. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Swedish Logistic Property.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential concerns with Swedish Logistic Property, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

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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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.