Need To Know: Analysts Are Much More Bullish On Smartoptics Group ASA (OB:SMOP) Revenues
Shareholders in Smartoptics Group ASA (OB:SMOP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Smartoptics Group will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Smartoptics Group too, with the stock up 22% to kr57.00 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After this upgrade, Smartoptics Group's three analysts are now forecasting revenues of US$161m in 2027. This would be a substantial 48% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 62% to US$0.17. Before this latest update, the analysts had been forecasting revenues of US$146m and earnings per share (EPS) of US$0.17 in 2027. The forecasts seem more optimistic now, with a solid increase in revenue and a small increase to earnings per share estimates.
See our latest analysis for Smartoptics Group
It will come as no surprise to learn that the analysts have increased their price target for Smartoptics Group 9.6% to US$7.18 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Smartoptics Group analyst has a price target of US$7.56 per share, while the most pessimistic values it at US$6.44. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Smartoptics Group's rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 13% p.a. 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 5.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Smartoptics Group is expected to grow much faster than its industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Smartoptics Group.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Smartoptics Group going out to 2028, and you can see them free on our platform here..
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