Upgrade: Analysts Just Made A Sizeable Increase To Their Fractal Gaming Group AB (publ) (STO:FRACTL) Forecasts

Celebrations may be in order for Fractal Gaming Group AB (publ) (STO:FRACTL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 9.6% over the past week, closing at kr38.70. Could this big upgrade push the stock even higher?

After the upgrade, the twin analysts covering Fractal Gaming Group are now predicting revenues of kr885m in 2025. If met, this would reflect a huge 24% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 81% to kr2.97. Before this latest update, the analysts had been forecasting revenues of kr789m and earnings per share (EPS) of kr2.35 in 2025. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Fractal Gaming Group

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Fractal Gaming Group's past performance and to peers in the same industry. The analysts are definitely expecting Fractal Gaming Group's growth to accelerate, with the forecast 24% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fractal Gaming Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Fractal Gaming Group's future.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2027, 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 backed by insiders.

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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.