Upgrade: The Latest Revenue Forecasts For Italmobiliare S.p.A. (BIT:ITM)

Italmobiliare S.p.A. (BIT:ITM) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline. The stock price has risen 4.3% to €30.20 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Italmobiliare's single analyst is for revenues of €555m in 2022 which - if met - would reflect a meaningful 12% increase on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 37% to €1.49 in the same period. Previously, the analyst had been modelling revenues of €436m and earnings per share (EPS) of €1.44 in 2022. The most recent forecasts are noticeably more optimistic, with a chunky increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Italmobiliare

Although the analyst has upgraded their earnings estimates, there was no change to the consensus price target of €43.00, 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. It's clear from the latest estimates that Italmobiliare's rate of growth is expected to accelerate meaningfully, with the forecast 12% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 0.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.4% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Italmobiliare to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst 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. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Italmobiliare.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Italmobiliare going out as far as 2024, and you can see them free on our platform here.

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.