Analysts Are Betting On Arise AB (publ) (STO:ARISE) With A Big Upgrade This Week

Arise AB (publ) (STO:ARISE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Arise will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Arise too, with the stock up 14% to kr50.20 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Arise from its twin analysts is for revenues of kr908m in 2022 which, if met, would be a substantial 168% increase on its sales over the past 12 months. Per-share earnings are expected to leap 308% to kr9.00. Prior to this update, the analysts had been forecasting revenues of kr676m and earnings per share (EPS) of kr9.02 in 2022. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Arise

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Arise's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6x growth to the end of 2022 on an annualised basis. That is well above its historical decline of 9.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 6.6% per year. So it looks like Arise is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Arise.

Analysts are clearly in love with Arise at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.