Need To Know: One Analyst Is Much More Bullish On Cementos Molins, S.A. (BDM:CMO) Revenues

Cementos Molins, S.A. (BDM:CMO) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for Cementos Molins from its solo analyst is for revenues of €939m in 2021 which, if met, would be a huge 25% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to drop 14% to €1.62 in the same period. Previously, the analyst had been modelling revenues of €798m and earnings per share (EPS) of €1.54 in 2021. The most recent forecasts are noticeably more optimistic, with a solid increase in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Cementos Molins

It will come as no surprise to learn that the analyst has increased their price target for Cementos Molins 15% to €20.90 on the back of these upgrades.

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. The analyst is definitely expecting Cementos Molins' growth to accelerate, with the forecast 25% annualised growth to the end of 2021 ranking favourably alongside historical growth of 2.2% 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 5.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cementos Molins is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Cementos Molins.

Better yet, our automated discounted cash flow calculation (DCF) suggests Cementos Molins could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.

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.

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