New Forecasts: Here's What One Analyst Thinks The Future Holds For TagMaster AB (publ) (STO:TAGM B)

TagMaster AB (publ) (STO:TAGM B) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 6.2% to kr12.00 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for TagMaster from its one analyst is for revenues of kr480m in 2025 which, if met, would be a meaningful 16% increase on its sales over the past 12 months. Before the latest update, the analyst was foreseeing kr400m of revenue in 2025. It looks like there's been a clear increase in optimism around TagMaster, given the substantial gain in revenue forecasts.

View our latest analysis for TagMaster

We'd point out that there was no major changes to their price target of kr22.60, suggesting the latest estimates were not enough to shift their view on the value of the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that TagMaster's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TagMaster is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for TagMaster next year. They're also forecasting more rapid revenue growth 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 TagMaster.

Want to learn more? One TagMaster broker/analyst has provided estimates out to 2025, 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 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.