Shareholders in Motor Oil (Hellas) Corinth Refineries S.A. (ATH:MOH) 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 analysts now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from Motor Oil (Hellas) Corinth Refineries' seven analysts is for revenues of €9.3b in 2021, which would reflect a major 47% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €7.6b of revenue in 2021. It looks like there's been a clear increase in optimism around Motor Oil (Hellas) Corinth Refineries, given the great increase in revenue forecasts.
There was no particular change to the consensus price target of €17.20, with Motor Oil (Hellas) Corinth Refineries' latest outlook seemingly not enough to result in a change of valuation. 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 Motor Oil (Hellas) Corinth Refineries analyst has a price target of €21.40 per share, while the most pessimistic values it at €15.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Motor Oil (Hellas) Corinth Refineries shareholders.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Motor Oil (Hellas) Corinth Refineries' growth to accelerate, with the forecast 66% annualised growth to the end of 2021 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.7% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Motor Oil (Hellas) Corinth Refineries is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Motor Oil (Hellas) Corinth Refineries 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 Motor Oil (Hellas) Corinth Refineries.
Better yet, our automated discounted cash flow calculation (DCF) suggests Motor Oil (Hellas) Corinth Refineries 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.
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