Upgrade: The Latest Revenue Forecasts For Ovzon AB (publ) (STO:OVZON)

Celebrations may be in order for Ovzon AB (publ) (STO:OVZON) 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 Ovzon's sole analyst is for revenues of kr338m in 2022, which would reflect a huge 33% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of kr302m in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for Ovzon

The consensus price target fell 15% to kr55.00, with the analyst clearly less optimistic about Ovzon's valuation following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Ovzon's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 46% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 6.9% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.2% per year. Not only are Ovzon'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 highlight for us was that the analyst increased their revenue forecasts for Ovzon this year. They're also forecasting more rapid revenue growth 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. 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 Ovzon.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Ovzon to be able to reach break-even within the next few years. You can learn more about these forecasts, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.