New Forecasts: Here's What Analysts Think The Future Holds For M.P. Evans Group plc (LON:MPE)

Shareholders in M.P. Evans Group plc (LON:MPE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from M.P. Evans Group's two analysts is for revenues of US$203m in 2021 which - if met - would reflect a substantial 36% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$180m in 2021. It looks like there's been a clear increase in optimism around M.P. Evans Group, given the nice gain to revenue forecasts.

View our latest analysis for M.P. Evans Group

We'd point out that there was no major changes to their price target of US$13.07, suggesting the latest estimates were not enough to shift their view on the value of the business. 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 M.P. Evans Group at US$10.01 per share, while the most bearish prices it at US$9.06. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

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 analysts are definitely expecting M.P. Evans Group's growth to accelerate, with the forecast 36% annualised growth to the end of 2021 ranking favourably alongside historical growth of 5.7% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that M.P. Evans Group is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for M.P. Evans Group this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at M.P. Evans Group.

Want to learn more? We have analyst estimates for M.P. Evans Group going out to 2022, and you can see them free on our platform here.

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