Shareholders in Flow Traders Ltd. (AMS:FLOW) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

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Following the latest upgrade, the current consensus, from the four analysts covering Flow Traders, is for revenues of €565m in 2025, which would reflect a substantial 30% reduction in Flow Traders' sales over the past 12 months. Before the latest update, the analysts were foreseeing €492m of revenue in 2025. It looks like there's been a clear increase in optimism around Flow Traders, given the decent improvement in revenue forecasts.

See our latest analysis for Flow Traders

Additionally, the consensus price target for Flow Traders increased 10% to €25.88, showing a clear increase in optimism from the analysts involved.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. Over the past five years, revenues have declined around 4.0% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 38% decline in revenue until the end of 2025. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 3.9% annually. So while a broad number of companies are forecast to grow, unfortunately Flow Traders is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Flow Traders this year. They're also anticipating slower revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Flow Traders.

Thirsting for more data? At least one of Flow Traders' four analysts has provided estimates out to 2027, which can be seen for free on our platform here.

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 with high insider ownership.

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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.