Analysts Are Betting On Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) With A Big Upgrade This Week

Celebrations may be in order for Terna Energy Societe Anonyme Commercial Technical Company (ATH:TENERGY) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the five analysts covering Terna Energy Societe Anonyme Commercial Technical provided consensus estimates of €337m revenue in 2022, which would reflect an uncomfortable 17% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €295m of revenue in 2022. It looks like there's been a clear increase in optimism around Terna Energy Societe Anonyme Commercial Technical, given the substantial gain in revenue forecasts.

Check out our latest analysis for Terna Energy Societe Anonyme Commercial Technical

We'd point out that there was no major changes to their price target of €17.94, 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 Terna Energy Societe Anonyme Commercial Technical at €22.40 per share, while the most bearish prices it at €15.25. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that sales are expected to reverse, with a forecast 17% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 7.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. It's pretty clear that Terna Energy Societe Anonyme Commercial Technical's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Terna Energy Societe Anonyme Commercial Technical this year. They also expect company revenue to perform worse 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 Terna Energy Societe Anonyme Commercial Technical.

Thirsting for more data? At least one of Terna Energy Societe Anonyme Commercial Technical's five analysts has provided estimates out to 2024, which can be seen for free on our platform here.

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.