Need To Know: One Analyst Is Much More Bullish On SP Group A/S (CPH:SPG) Revenues

SP Group A/S (CPH:SPG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's forecasts. The analyst has sharply increased their revenue numbers, with a view that SP Group will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 4.6% over the past week, closing at kr.333. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the upgrade, the latest consensus from SP Group's solo analyst is for revenues of kr.3.6b in 2026, which would reflect a sizeable 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 40% to kr.28.70. Prior to this update, the analyst had been forecasting revenues of kr.3.1b and earnings per share (EPS) of kr.26.40 in 2026. The forecasts seem more optimistic now, with a substantial gain in revenue and a small lift in earnings per share estimates.

Check out our latest analysis for SP Group

It will come as no surprise to learn that the analyst has increased their price target for SP Group 19% to kr.470 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting SP Group's growth to accelerate, with the forecast 20% annualised growth to the end of 2026 ranking favourably alongside historical growth of 5.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect SP 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 next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at SP 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 SP Group going out as far as 2027, and you can see them free on our platform here.

You can also see our analysis of SP Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.