Analysts Are Betting On MAHLE Metal Leve S.A. (BVMF:LEVE3) With A Big Upgrade This Week

MAHLE Metal Leve S.A. (BVMF:LEVE3) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on MAHLE Metal Leve too, with the stock up 11% to R$34.37 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from MAHLE Metal Leve's three analysts is for revenues of R$3.8b in 2021 which - if met - would reflect a sizeable 42% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing R$3.0b of revenue in 2021. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.

Check out our latest analysis for MAHLE Metal Leve

We'd point out that there was no major changes to their price target of R$26.67, suggesting the latest estimates were not enough to shift their view on the value of the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on MAHLE Metal Leve, with the most bullish analyst valuing it at R$29.00 and the most bearish at R$24.00 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that MAHLE Metal Leve's rate of growth is expected to accelerate meaningfully, with the forecast 103% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 2.4% p.a. 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 4.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that MAHLE Metal Leve is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for 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 MAHLE Metal Leve.

Want more information? We have analyst estimates for MAHLE Metal Leve going out to 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
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