Need To Know: Analysts Are Much More Bullish On Interfor Corporation (TSE:IFP) Revenues

Celebrations may be in order for Interfor Corporation (TSE:IFP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Interfor's four analysts are now forecasting revenues of CA$2.9b in 2021. This would be a sizeable 31% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$2.7b in 2021. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the small lift in this year's revenue forecasts.

See our latest analysis for Interfor

The consensus price target rose 9.3% to CA$38.60, with the analysts clearly more optimistic about Interfor's prospects following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Interfor at CA$50.00 per share, while the most bearish prices it at CA$27.23. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Interfor's rate of growth is expected to accelerate meaningfully, with the forecast 31% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 3.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Interfor is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Interfor this year. The analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Interfor.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with Interfor, including recent substantial insider selling. You can learn more, and discover the 2 other flags we've identified, 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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