Analyst Forecasts For ILPRA S.p.A. (BIT:ILP) Are Surging Higher

Shareholders in ILPRA S.p.A. (BIT:ILP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. ILPRA has also found favour with investors, with the stock up a worthy 13% to €4.90 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 latest consensus from ILPRA's twin analysts is for revenues of €55m in 2023, which would reflect a huge 23% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 49% to €0.55. Prior to this update, the analysts had been forecasting revenues of €49m and earnings per share (EPS) of €0.48 in 2023. 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.

See our latest analysis for ILPRA

It will come as no surprise to learn that the analysts have increased their price target for ILPRA 7.7% to €7.20 on the back of these upgrades. 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. Currently, the most bullish analyst values ILPRA at €8.89 per share, while the most bearish prices it at €5.70. 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.

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 ILPRA's rate of growth is expected to accelerate meaningfully, with the forecast 23% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 13% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ILPRA is expected to grow much faster than its 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 estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at ILPRA.

Better yet, our automated discounted cash flow calculation (DCF) suggests ILPRA could be moderately undervalued. You can learn more about our valuation methodology 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.