News Flash: Analysts Just Made A Notable Upgrade To Their Transtema Group AB (STO:TRANS) Forecasts

Transtema Group AB (STO:TRANS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on Transtema Group too, with the stock up 24% to kr38.20 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Transtema Group's twin analysts are now forecasting revenues of kr2.0b in 2022. This would be a solid 16% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing kr1.7b of revenue in 2022. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

Check out our latest analysis for Transtema Group

The consensus price target rose 20% to kr54.00, with the analysts clearly more optimistic about Transtema Group's prospects following this update.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Transtema Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Transtema Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 16% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.8% per year. Even after the forecast slowdown in growth, it seems obvious that Transtema Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Transtema Group.

Still got questions? We have analyst estimates for Transtema Group going out to 2024, and you can see them 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.