Waystream Holding AB (publ)'s (STO:WAYS) Sole Analyst Just Made A Sizeable Upgrade To Their Forecasts

Waystream Holding AB (publ) (STO:WAYS) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Waystream Holding has also found favour with investors, with the stock up a notable 23% to kr91.00 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the one analyst covering Waystream Holding is now predicting revenues of kr211m in 2023. If met, this would reflect a substantial 41% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 92% to kr4.90. Previously, the analyst had been modelling revenues of kr185m and earnings per share (EPS) of kr3.90 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Waystream Holding

It will come as no surprise to learn that the analyst has increased their price target for Waystream Holding 15% to kr115 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Waystream Holding's rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Waystream Holding 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Waystream Holding.

The covering analyst is definitely bullish on Waystream Holding, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

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.