Need To Know: Analysts Are Much More Bullish On Bank of Cyprus Holdings Public Limited Company (CSE:BOCH) Revenues

Bank of Cyprus Holdings Public Limited Company (CSE:BOCH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Bank of Cyprus Holdings will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Bank of Cyprus Holdings too, with the stock up 24% to €2.83 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Bank of Cyprus Holdings' three analysts is for revenues of €843m in 2023 which - if met - would reflect a major 29% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €763m of revenue in 2023. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for Bank of Cyprus Holdings

Additionally, the consensus price target for Bank of Cyprus Holdings increased 32% to €3.83, showing a clear increase in optimism from the analysts involved. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Bank of Cyprus Holdings analyst has a price target of €4.00 per share, while the most pessimistic values it at €3.70. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bank of Cyprus Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Bank of Cyprus Holdings' growth to accelerate, with the forecast 29% annualised growth to the end of 2023 ranking favourably alongside historical growth of 12% 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 8.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bank of Cyprus Holdings 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. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Bank of Cyprus Holdings.

Looking for more information? We have analyst estimates for Bank of Cyprus Holdings going out to 2025, 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.