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Enterprise Group, Inc. (TSE:E) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the upgrade, the latest consensus from Enterprise Group's twin analysts is for revenues of CA$42m in 2024, which would reflect a solid 10% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 20% to CA$0.16. Before this latest update, the analysts had been forecasting revenues of CA$38m and earnings per share (EPS) of CA$0.12 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Enterprise Group
It will come as no surprise to learn that the analysts have increased their price target for Enterprise Group 107% to CA$3.35 on the back of these upgrades.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Enterprise Group's past performance and to peers in the same industry. We would highlight that Enterprise Group's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. Even after the forecast slowdown in growth, it seems obvious that Enterprise 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 upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Enterprise Group could be worth investigating further.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Enterprise Group going out as far as 2025, 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.