This just ended: analysts strengthen their outlook for Eolus Vind AB (publ) (STO: EOLU B) for next year
Celebrations may be appropriate for Eolus Vind AB (released) (STO: EOLU B), with analysts providing a significant upgrade to their statutory estimates for the company. Consensual statutory figures for both revenue and earnings per share (EPS) have risen as their view is significantly more optimistic about the company’s business prospects.
After the upgrade, the two analysts covering Eolus Vind now forecast revenue of kr 3.3 billion in 2022. If achieved, that would reflect a huge 32% improvement in sales from the past 12 months. Earnings per share is expected to increase 44% to 7.98 kr. Prior to this update, analysts were forecasting revenue of Kroner 1.9 billion and earnings per share (EPS) of Kroner 3.96 in 2022. So we can see that there has been a pretty clear increase in sentiment. analysts lately, with both earnings and earnings per share receiving a decent increase in the latest estimates.
Check out our latest review for Eolus Vind
Although analysts have improved their earnings estimates, the consensus price target of 213kr has not changed, suggesting that the performance forecast does not have a long-term impact on the valuation of the company. . The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. The most optimistic analyst of Eolus Vind has a price target of 220 kr per share, while the more pessimistic puts it at 205 kr. Even so, with a relatively tight grouping of estimates, it seems that analysts are quite confident in their valuations, suggesting that Eolus Vind is an easy company to predict or that the underlying assumptions are obvious.
These estimates are interesting, but it may be useful to paint a few broader strokes when comparing the forecasts, both to the past performance of Eolus Vind and to that of its peers in the same industry. We can infer from the latest estimates that the forecast calls for a continuation of historical Eolus Vind trends, as the 25% annualized revenue growth through the end of 2022 is roughly in line with the 23% annual revenue growth. over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are expected to see their revenues grow by 7.6% per year. So while Eolus Vind is expected to maintain its revenue growth rate, it is certainly expected to grow faster than the industry as a whole.
The bottom line
The most important thing to take away from this upgrade is that analysts have improved their earnings per share estimates for next year, expecting better trading conditions. Fortunately, analysts have improved their revenue estimates as well, and our data indicates that sales should outperform the broader market. Some investors might be disappointed that the price target is unchanged, but we believe the improvement in fundamentals is generally positive – assuming these expectations are met! Eolus Vind could therefore be a good candidate for more research.
Even so, the company’s longer-term trajectory is much more important to creating shareholder value. We have analyst estimates for Eolus Vind through 2023, and you can view them for free on our platform here.
Of course, see the management of the company invest large sums of money in a stock can be just as useful as knowing whether analysts are improving their estimates. So you can also search for this free list of stocks that insiders buy.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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