Yahoo Finance Need To Know: One Analyst Is Much More Bullish On COG Financial Services Limited (ASX:COG) Revenues
COG Financial Services Limited (ASX:COG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that COG Financial Services will make substantially more sales than they'd previously expected.
Following the upgrade, the most recent consensus for COG Financial Services from its solitary analyst is for revenues of AU$416m in 2024 which, if met, would be a meaningful 14% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 163% to AU$0.11. Prior to this update, the analyst had been forecasting revenues of AU$371m and earnings per share (EPS) of AU$0.11 in 2024. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a small lift in earnings per share estimates.
Check out our latest analysis for COG Financial Services
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 14% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 2.8% per year. So although COG Financial Services is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst 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 analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at COG Financial Services.
The covering analyst is definitely bullish on COG Financial Services, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 3 other risks we've identified .
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 that insiders are buying.
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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.
