News Flash: Analysts Just Made A Sizeable Upgrade To Their Alvopetro Energy Ltd. (CVE:ALV) Forecasts

Alvopetro Energy Ltd. (CVE:ALV) 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 the analysts now much more optimistic on its sales pipeline. The stock price has risen 8.9% to CA$5.86 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the dual analysts covering Alvopetro Energy are now predicting revenues of US$64m in 2022. If met, this would reflect a major 66% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 98% to US$1.10. Before this latest update, the analysts had been forecasting revenues of US$56m and earnings per share (EPS) of US$0.92 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Alvopetro Energy

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alvopetro Energy's past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 96% growth on an annualised basis. That is in line with its 81% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.4% annually. So it's pretty clear that Alvopetro Energy is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Alvopetro Energy.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for 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.