Industry Analysts Just Upgraded Their Mytilineos S.A. (ATH:MYTIL) Revenue Forecasts By 15%

Mytilineos S.A. (ATH:MYTIL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Mytilineos will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Mytilineos' five analysts is for revenues of €5.6b in 2022 which - if met - would reflect a major 47% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €4.9b in 2022. It looks like there's been a clear increase in optimism around Mytilineos, given the nice increase in revenue forecasts.

View our latest analysis for Mytilineos

We'd point out that there was no major changes to their price target of €24.42, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Mytilineos at €26.00 per share, while the most bearish prices it at €22.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Mytilineos is an easy business to forecast or the underlying assumptions are obvious.

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. It's clear from the latest estimates that Mytilineos' rate of growth is expected to accelerate meaningfully, with the forecast 117% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 16% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Mytilineos to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Mytilineos this year. The analysts also expect revenues to grow faster 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 Mytilineos.

Analysts are clearly in love with Mytilineos 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 2 other concerns we've identified .

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.

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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.