Analysts Just Published A Bright New Outlook For Enel Américas S.A.'s (SNSE:ENELAM)

Celebrations may be in order for Enel Américas S.A. (SNSE:ENELAM) 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.

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Following the upgrade, the latest consensus from Enel Américas' five analysts is for revenues of US$14b in 2025, which would reflect a satisfactory 5.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 23% to US$0.0097. Before this latest update, the analysts had been forecasting revenues of US$13b and earnings per share (EPS) of US$0.0084 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Enel Américas

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$0.11, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Enel Américas analyst has a price target of US$0.12 per share, while the most pessimistic values it at US$0.11. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Enel Américas is an easy business to forecast or the underlying assumptions are obvious.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Enel Américas' growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.4% per annum 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 0.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Enel Américas is expected to grow much faster than its 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. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Enel Américas.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Enel Américas going out to 2027, and you can see them free on our platform here..

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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.