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The Platform Group AG (ETR:TPG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Platform Group has also found favour with investors, with the stock up a worthy 10% to €10.85 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
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After the upgrade, the seven analysts covering Platform Group are now predicting revenues of €684m in 2025. If met, this would reflect a sizeable 29% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to shrink 3.9% to €1.60 in the same period. Previously, the analysts had been modelling revenues of €621m and earnings per share (EPS) of €1.02 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
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With these upgrades, we're not surprised to see that the analysts have lifted their price target 16% to €17.50 per share.
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. We would highlight that Platform Group's revenue growth is expected to slow, with the forecast 29% annualised growth rate until the end of 2025 being well below the historical 47% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.6% per year. So it's pretty clear that, while Platform Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away from this upgrade is that analysts 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 consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Platform Group could be worth investigating further.