News Flash: Analysts Just Made A Substantial Upgrade To Their Hanza AB (publ) (STO:HANZA) Forecasts

Hanza AB (publ) (STO:HANZA) 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.

After the upgrade, the four analysts covering Hanza are now predicting revenues of kr5.9b in 2025. If met, this would reflect a huge 28% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 117% to kr6.32. Before this latest update, the analysts had been forecasting revenues of kr5.4b and earnings per share (EPS) of kr5.98 in 2025. The forecasts seem more optimistic now, with a nice increase in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Hanza

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr85.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Hanza'shistorical trends, as the 22% annualised revenue growth to the end of 2025 is roughly in line with the 19% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 7.8% per year. So although Hanza is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Hanza.

Analysts are clearly in love with Hanza at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 1 other concern we've identified, 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 with high insider ownership.

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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.