Growth Investors: Industry Analysts Just Upgraded Their Comer Industries S.p.A. (BIT:COM) Revenue Forecasts By 50%

Celebrations may be in order for Comer Industries S.p.A. (BIT:COM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Could this be enough to reverse the market's pessimism for Comer Industries? At €25.60, the stock is 5.2% below where it was a week ago.

Following the upgrade, the current consensus from Comer Industries' two analysts is for revenues of €792m in 2021 which - if met - would reflect a major 60% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 66% to €2.06. Previously, the analysts had been modelling revenues of €527m and earnings per share (EPS) of €1.92 in 2021. The most recent forecasts are noticeably more optimistic, with a sizeable gain to revenue estimates and a lift to earnings per share as well.

View our latest analysis for Comer Industries

With these upgrades, we're not surprised to see that the analysts have lifted their price target 12% to €33.10 per share.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Comer Industries' rate of growth is expected to accelerate meaningfully, with the forecast 155% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 32% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Comer Industries to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Comer Industries.

Better yet, our automated discounted cash flow calculation (DCF) suggests Comer Industries could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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.