Need To Know: Analysts Are Much More Bullish On Klöckner & Co SE (ETR:KCO) Revenues

Celebrations may be in order for Klöckner & Co SE (ETR:KCO) 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.

Following the upgrade, the current consensus from Klöckner & Co's seven analysts is for revenues of €7.3b in 2021 which - if met - would reflect a huge 41% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €6.5b of revenue in 2021. It looks like there's been a clear increase in optimism around Klöckner & Co, given the nice increase in revenue forecasts.

View our latest analysis for Klöckner & Co

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Klöckner & Co is forecast to grow faster in the future than it has in the past, with revenues expected to display 58% annualised growth until the end of 2021. If achieved, this would be a much better result than the 1.4% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.0% per year. Not only are Klöckner & Co's revenues expected to improve, it seems that the analysts are also expecting it to grow faster 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're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Klöckner & Co.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, 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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