This Just In: Analysts Are Boosting Their Bank Leumi le-Israel B.M. (TLV:LUMI) Outlook for This Year

Bank Leumi le-Israel B.M. (TLV:LUMI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Bank Leumi le-Israel B.M's twin analysts is for revenues of ₪22b in 2024, which would reflect a reasonable 6.6% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to reduce 6.9% to ₪5.40 in the same period. Previously, the analysts had been modelling revenues of ₪19b and earnings per share (EPS) of ₪4.40 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Bank Leumi le-Israel B.M

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of ₪41.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Bank Leumi le-Israel B.M's revenue growth is expected to slow, with the forecast 6.6% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.3% annually. So it's pretty clear that, while Bank Leumi le-Israel B.M's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue forecasts, although the latest estimates suggest that Bank Leumi le-Israel B.M will grow in line with the overall market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Bank Leumi le-Israel B.M could be a good candidate for more research.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with Bank Leumi le-Israel B.M, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other flags we've identified, 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 backed by insiders.

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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.