Analyst Forecasts For RVRC Holding AB (publ) (STO:RVRC) Are Surging Higher
Celebrations may be in order for RVRC Holding AB (publ) (STO:RVRC) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The stock price has risen 7.4% to kr60.85 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.
After the upgrade, the four analysts covering RVRC Holding are now predicting revenues of kr2.6b in 2027. If met, this would reflect a huge 31% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 28% to kr4.00. Previously, the analysts had been modelling revenues of kr2.2b and earnings per share (EPS) of kr3.62 in 2027. 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 RVRC Holding
It will come as no surprise to learn that the analysts have increased their price target for RVRC Holding 7.9% to kr82.00 on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting RVRC Holding's growth to accelerate, with the forecast 24% annualised growth to the end of 2027 ranking favourably alongside historical growth of 15% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that RVRC Holding is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next 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, RVRC Holding could be worth investigating further.
Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on RVRC Holding that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.
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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.