Analysts Just Published A Bright New Outlook For d'Amico International Shipping S.A.'s (BIT:DIS)

d'Amico International Shipping S.A. (BIT:DIS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory 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.

After the upgrade, the consensus from d'Amico International Shipping's three analysts is for revenues of US$312m in 2023, which would reflect an uneasy 17% decline in sales compared to the last year of performance. Per-share earnings are expected to leap 35% to US$0.06. Before this latest update, the analysts had been forecasting revenues of US$270m and earnings per share (EPS) of US$0.03 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for d'Amico International Shipping

With these upgrades, we're not surprised to see that the analysts have lifted their price target 29% to US$0.39 per share. 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 d'Amico International Shipping at US$0.43 per share, while the most bearish prices it at US$0.33. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. One more thing stood out to us about these estimates, and it's the idea that d'Amico International Shipping's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 14% to the end of 2023. This tops off a historical decline of 8.2% a year over the past five years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to decline 7.3% annually. While this is interesting, d'Amico International Shipping's, revenues are still expected to shrink next year, and at a faster rate 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 next year, expecting improving business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market next year. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, d'Amico International Shipping could be worth investigating further.

Analysts are definitely bullish on d'Amico International Shipping, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

We also provide an overview of the d'Amico International Shipping Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.