Bullish: This Analyst Just Lifted Their iGrandiViaggi S.p.A. (BIT:IGV) Outlook For This Year

By
Simply Wall St
Published
July 01, 2021
BIT:IGV
Source: Shutterstock

Shareholders in iGrandiViaggi S.p.A. (BIT:IGV) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for iGrandiViaggi from its single analyst is for revenues of €34m in 2021 which, if met, would be a sizeable 59% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 72% to €0.04. Yet prior to the latest estimates, the analyst had been forecasting revenues of €26m and losses of €0.10 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for iGrandiViaggi

earnings-and-revenue-growth
BIT:IGV Earnings and Revenue Growth July 1st 2021

The consensus price target rose 47% to €1.50, with the analyst encouraged by the higher revenue and lower forecast losses for this year.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the iGrandiViaggi's past performance and to peers in the same industry. For example, we noticed that iGrandiViaggi's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 59% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 6.4% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. So it looks like iGrandiViaggi is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around iGrandiViaggi's prospects. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at iGrandiViaggi.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, which can be seen for 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. 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.
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