New Forecasts: Here's What Analysts Think The Future Holds For Voltalia SA (EPA:VLTSA)

Shareholders in Voltalia SA (EPA:VLTSA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After this upgrade, Voltalia's six analysts are now forecasting revenues of €602m in 2023. This would be a decent 18% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €529m in 2023. It looks like there's been a clear increase in optimism around Voltalia, given the solid increase in revenue forecasts.

Check out our latest analysis for Voltalia

We'd point out that there was no major changes to their price target of €21.09, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Voltalia analyst has a price target of €25.00 per share, while the most pessimistic values it at €18.40. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Voltalia's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2023 being well below the historical 24% p.a. growth over the last five years. Compare this to the 8 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it looks like Voltalia is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. Analysts also expect revenues to grow approximately in line with the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Voltalia.

Analysts are clearly in love with Voltalia 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. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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. 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.