Analysts Are Betting On MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) With A Big Upgrade This Week

MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság (BUSE:MOL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság too, with the stock up 11% to Ft2,842 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's six analysts are now forecasting revenues of Ft8.2t in 2022. This would be a major 21% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of Ft8.6t in 2022. The forecasts seem less optimistic overall, with the modest decline in revenue estimates in the latest consensus update.

Check out our latest analysis for MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság

We'd point out that there was no major changes to their price target of Ft3,296, 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. There are some variant perceptions on MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság, with the most bullish analyst valuing it at Ft4,241 and the most bearish at Ft2,800 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 5.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 3.4% annually. It seems obvious that as part of the brighter growth outlook, MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to perform better 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 MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság.

Better yet, our automated discounted cash flow calculation (DCF) suggests MOL Magyar Olaj- és Gázipari Nyilvánosan Muködo Részvénytársaság 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.