Industry Analysts Just Made A Substantial Upgrade To Their d'Amico International Shipping S.A. (BIT:DIS) Revenue Forecasts

d'Amico International Shipping S.A. (BIT:DIS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the latest upgrade, the three analysts covering d'Amico International Shipping provided consensus estimates of US$406m revenue in 2024, which would reflect a substantial 25% decline on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$365m of revenue in 2024. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

Check out our latest analysis for d'Amico International Shipping

There was no particular change to the consensus price target of US$7.96, with d'Amico International Shipping's latest outlook seemingly not enough to result in a change of valuation. 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. There are some variant perceptions on d'Amico International Shipping, with the most bullish analyst valuing it at US$9.23 and the most bearish at US$6.85 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting d'Amico International Shipping is an easy business to forecast or the underlying assumptions are obvious.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 25% by the end of 2024. This indicates a significant reduction from annual growth of 8.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.8% annually for the foreseeable future. The forecasts do look bearish for d'Amico International Shipping, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting for revenues to shrink at a quicker rate than companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at d'Amico International Shipping.

Better yet, our automated discounted cash flow calculation (DCF) suggests d'Amico International Shipping 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.