Rainbows and Unicorns: Flughafen Wien Aktiengesellschaft (VIE:FLU) Analysts Just Became A Lot More Optimistic

Celebrations may be in order for Flughafen Wien Aktiengesellschaft (VIE:FLU) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Flughafen Wien from its three analysts is for revenues of €644m in 2022 which, if met, would be a substantial 39% increase on its sales over the past 12 months. Statutory earnings per share are presumed to surge 123% to €0.90. Prior to this update, the analysts had been forecasting revenues of €551m and earnings per share (EPS) of €0.45 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Flughafen Wien

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.6% to €28.88 per share. 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. There are some variant perceptions on Flughafen Wien, with the most bullish analyst valuing it at €32.00 and the most bearish at €21.50 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Flughafen Wien's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 39% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Flughafen Wien's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. 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, Flughafen Wien could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Flughafen Wien that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.