Yahoo Finance Just In: One Analyst Has Become A Lot More Bullish On Enterprise Group, Inc.'s (TSE:E) Earnings
Celebrations may be in order for Enterprise Group, Inc. (TSE:E) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
After the upgrade, the single analyst covering Enterprise Group is now predicting revenues of CA$32m in 2023. If met, this would reflect a decent 8.4% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to swell 17% to CA$0.08. Before this latest update, the analyst had been forecasting revenues of CA$29m and earnings per share (EPS) of CA$0.05 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
Check out our latest analysis for Enterprise Group
It will come as no surprise to learn that the analyst has increased their price target for Enterprise Group 9.8% to CA$1.12 on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Enterprise Group's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 1.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 0.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Enterprise Group to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Enterprise Group.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Enterprise Group going out as far as 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.
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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.
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