Growth Investors: Industry Analysts Just Upgraded Their OMV Aktiengesellschaft (VIE:OMV) Revenue Forecasts By 12%

OMV Aktiengesellschaft (VIE:OMV) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that OMV will make substantially more sales than they'd previously expected.

After this upgrade, OMV's 15 analysts are now forecasting revenues of €40b in 2022. This would be a solid 13% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €36b of revenue in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for OMV

There was no particular change to the consensus price target of €56.28, with OMV's latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic OMV analyst has a price target of €68.00 per share, while the most pessimistic values it at €42.30. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the OMV's past performance and to peers in the same industry. The analysts are definitely expecting OMV's growth to accelerate, with the forecast 13% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.4% per annum 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 3.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect OMV to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for OMV this year. The analysts also expect revenues to grow faster 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? We have analyst estimates for OMV going out to 2024, and you can see them 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.