Need To Know: Analysts Are Much More Bullish On Banco de Chile (SNSE:CHILE) Revenues

Celebrations may be in order for Banco de Chile (SNSE:CHILE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Banco de Chile's eleven analysts is for revenues of CL$2.6t in 2022 which - if met - would reflect a sizeable 41% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CL$2.4t of revenue in 2022. It looks like there's been a clear increase in optimism around Banco de Chile, given the decent improvement in revenue forecasts.

Check out our latest analysis for Banco de Chile

We'd point out that there was no major changes to their price target of CL$92.57, 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 Banco de Chile, with the most bullish analyst valuing it at CL$95.00 and the most bearish at CL$89.00 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Banco de Chile's growth to accelerate, with the forecast 57% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Banco de Chile is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Banco de Chile this year. They're also forecasting more rapid revenue growth 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 Banco de Chile.

Hungry for more information? We have analyst estimates for Banco de Chile going out to 2024, 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.