Growth Investors: Industry Analysts Just Upgraded Their Genfit S.A. (EPA:GNFT) Revenue Forecasts By 28%

Celebrations may be in order for Genfit S.A. (EPA:GNFT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Genfit will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 19% to €4.60 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the latest consensus from Genfit's five analysts is for revenues of €105m in 2024, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €82m of revenue in 2024. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

Check out our latest analysis for Genfit

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. The analysts are definitely expecting Genfit's growth to accelerate, with the forecast 72% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% 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 36% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Genfit 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 Genfit.

Analysts are clearly in love with Genfit at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. You can learn more, and discover the 1 other concern we've identified, 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 with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.