The shareholders of Oma Säästöpankki Oyj (HEL: OMASP) may be pleased to hear that analysts have just provided a major upgrade to their near-term forecast. The statutory consensus figures for revenue and earnings per share (EPS) have risen, as their view is significantly more optimistic about the business outlook for the company. The market also appears to be forecasting some improvement in activity, with the stock rising 7.5% over the past week, closing at € 15.75. However, it remains to be seen whether the upgrade is enough to push the share price up.

After this upgrade, the two analysts of Oma Säästöpankki Oyj now forecast a turnover of 155 M € in 2021. This would be a notable improvement of 51% in sales compared to the last 12 months. Statutory earnings per share should increase by 19% to € 2.38. Prior to this update, analysts were forecasting revenue of € 137 million and earnings per share (EPS) of € 1.89 in 2021. There has been a marked improvement in perception recently, analysts dramatically increasing both their profits and their income estimates.

See our latest review for Oma Säästöpankki Oyj

With these developments, we are not surprised to see that analysts have raised their price target from 19% to € 18.50 per share.

Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. It is clear from the latest estimates that Oma Säästöpankki Oyj’s growth rate is expected to accelerate significantly, with an annualized revenue growth forecast of 128% through the end of 2021 to be significantly faster than its historic growth of 11% per year over the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 4.5% per year. It seems obvious that while the growth outlook is brighter than in the recent past, analysts also expect Oma Säästöpankki Oyj 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 this year, expecting better trading conditions. They also improved their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus seems almost universally bullish, with a substantial increase in the forecast and a higher price target, Oma Säästöpankki Oyj may be worth investigating further.

Analysts are definitely bullish on Oma Säästöpankki Oyj, but no company is perfect. Indeed, you should be aware that there are several potential concerns to be aware of, including concerns about the quality of profits. For more information, you can click on our platform to learn more about this risk and the 1 other risk that we have identified.

Another way to find interesting companies that might be reach an inflection point is to track whether management buys or sells, with our free list of growing companies that insiders buy.

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