Need To Know: One Analyst Is Much More Bullish On Concejo AB (publ) (STO:CNCJO B) Revenues

Celebrations may be in order for Concejo AB (publ) (STO:CNCJO B) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Concejo's solo analyst is for revenues of kr293m in 2022, which would reflect a decent 12% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting kr1.30 in per-share earnings. Prior to this update, the analyst had been forecasting revenues of kr262m and earnings per share (EPS) of kr1.20 in 2022. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Concejo

As a result, it might be a surprise to see that the analyst has cut their price target 5.2% to kr73.00, which could suggest the forecast improvement in performance is not expected to last.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Concejo is forecast to grow faster in the future than it has in the past, with revenues expected to display 12% annualised growth until the end of 2022. If achieved, this would be a much better result than the 46% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.6% annually. Not only are Concejo's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than 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 this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Concejo.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, 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 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.