Analysts' Revenue Estimates For OMV Aktiengesellschaft (VIE:OMV) Are Surging Higher

Celebrations may be in order for OMV Aktiengesellschaft (VIE:OMV) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that OMV will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 5.3% to €48.97 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the 15 analysts covering OMV are now predicting revenues of €47b in 2022. If met, this would reflect a reasonable 4.7% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €43b of revenue in 2022. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

See our latest analysis for OMV

There was no particular change to the consensus price target of €55.59, with OMV's latest outlook seemingly not enough to result in a change of valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic OMV analyst has a price target of €68.00 per share, while the most pessimistic values it at €42.30. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's pretty clear that there is an expectation that OMV's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.7% growth on an annualised basis. This is compared to a historical growth rate of 8.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.1% annually. So it's pretty clear that, while OMV's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for OMV this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at OMV.

Want more information? At least one of OMV's 15 analysts has provided estimates out to 2024, 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 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.