Industry Analysts Just Upgraded Their Titan Cement International S.A. (ATH:TITC) Revenue Forecasts By 12%

Celebrations may be in order for Titan Cement International S.A. (ATH:TITC) 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 Titan Cement International will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Titan Cement International too, with the stock up 10% to €12.16 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from Titan Cement International's four analysts is for revenues of €2.1b in 2022 which - if met - would reflect a reasonable 7.1% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €1.8b in 2022. It looks like there's been a clear increase in optimism around Titan Cement International, given the solid increase in revenue forecasts.

See our latest analysis for Titan Cement International

Notably, the analysts have cut their price target 6.7% to €16.18, suggesting concerns around Titan Cement International's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Titan Cement International, with the most bullish analyst valuing it at €23.70 and the most bearish at €10.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Titan Cement International's past performance and to peers in the same industry. It's clear from the latest estimates that Titan Cement International's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 3.9% p.a. 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 3.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Titan Cement International to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Titan Cement International this year. The analysts also expect revenues to grow faster than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Titan Cement International.

Of course, there's always more to the story. At least one of Titan Cement International's four analysts has provided estimates out to 2024, which can be seen 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 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.