Industry Analysts Just Upgraded Their eDreams ODIGEO S.A. (BME:EDR) Revenue Forecasts By 10%

Celebrations may be in order for eDreams ODIGEO S.A. (BME:EDR) 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 latest consensus from eDreams ODIGEO's seven analysts is for revenues of €295m in 2022, which would reflect a major 175% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 75% to €0.29. Yet before this consensus update, the analysts had been forecasting revenues of €267m and losses of €0.29 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

Check out our latest analysis for eDreams ODIGEO

The consensus price target rose 5.8% to €5.15, with the analysts encouraged by the higher revenue and lower forecast losses for this year. 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. Currently, the most bullish analyst values eDreams ODIGEO at €7.20 per share, while the most bearish prices it at €3.50. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that eDreams ODIGEO's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 175% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 7.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. Not only are eDreams ODIGEO'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 here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around eDreams ODIGEO's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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 eDreams ODIGEO.

Better yet, eDreams ODIGEO is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

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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This article by Simply Wall St is general in nature. 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.
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