Industry Analysts Just Upgraded Their UmweltBank AG (ETR:UBK) Revenue Forecasts By 15%

Celebrations may be in order for UmweltBank AG (ETR:UBK) 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 analysts now much more optimistic on its sales pipeline.

After the upgrade, the consensus from UmweltBank's dual analysts is for revenues of €63m in 2021, which would reflect a noticeable 5.4% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing €54m of revenue in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

See our latest analysis for UmweltBank

Additionally, the consensus price target for UmweltBank increased 12% to €20.37, 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. There are some variant perceptions on UmweltBank, with the most bullish analyst valuing it at €20.73 and the most bearish at €20.00 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UmweltBank's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 5.4% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 0.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.7% per year. It's pretty clear that UmweltBank's revenues are expected to perform substantially worse than the wider 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 also expect company revenue to perform worse 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 UmweltBank.

Want more information? At least one of UmweltBank's dual analysts has provided estimates out to 2023, which can be seen 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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