News Flash: Analysts Just Made A Captivating Upgrade To Their OUTsurance Group Limited (JSE:OUT) Forecasts

OUTsurance Group Limited (JSE:OUT) 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. The stock price has risen 6.2% to R71.38 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for OUTsurance Group from its four analysts is for revenues of R36b in 2025 which, if met, would be a reasonable 5.3% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of R30b in 2025. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

See our latest analysis for OUTsurance Group

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. We would highlight that OUTsurance Group's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2025 being well below the historical 16% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 32% annually. Factoring in the forecast slowdown in growth, it's pretty clear that OUTsurance Group is still 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 for revenues to perform better than companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at OUTsurance Group.

Unanswered questions? We have analyst estimates for OUTsurance Group going out to 2027, 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 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.