Industry Analysts Just Made A Notable Upgrade To Their CEZ, a. s. (SEP:CEZ) Revenue Forecasts

CEZ, a. s. (SEP:CEZ) 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. Investor sentiment seems to be improving too, with the share price up 5.3% to Kč858 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from CEZ a. s' seven analysts is for revenues of Kč254b in 2022, which would reflect a meaningful 12% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of Kč229b in 2022. It looks like there's been a clear increase in optimism around CEZ a. s, given the nice gain to revenue forecasts.

See our latest analysis for CEZ a. s

There was no particular change to the consensus price target of Kč881, with CEZ a. s' latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic CEZ a. s analyst has a price target of Kč1,049 per share, while the most pessimistic values it at Kč750. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CEZ a. s' past performance and to peers in the same industry. The analysts are definitely expecting CEZ a. s' growth to accelerate, with the forecast 12% annualised growth to the end of 2022 ranking favourably alongside historical growth of 2.1% 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 1.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CEZ a. s 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. Analysts also expect revenues to grow faster 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 CEZ a. s.

Analysts are definitely bullish on CEZ a. s, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

We also provide an overview of the CEZ a. s Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.