Industry Analysts Just Upgraded Their d'Amico International Shipping S.A. (BIT:DIS) Revenue Forecasts By 17%

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 analysts have sharply increased their revenue numbers, with a view that d'Amico International Shipping will make substantially more sales than they'd previously expected. d'Amico International Shipping has also found favour with investors, with the stock up a noteworthy 13% to €3.45 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

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Following the latest upgrade, the four analysts covering d'Amico International Shipping provided consensus estimates of US$327m revenue in 2025, which would reflect a stressful 26% decline on its sales over the past 12 months. Statutory earnings per share are supposed to plunge 50% to US$0.64 in the same period. Prior to this update, the analysts had been forecasting revenues of US$280m and earnings per share (EPS) of US$0.60 in 2025. The most recent forecasts are noticeably more optimistic, with a nice increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for d'Amico International Shipping

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$5.56, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic d'Amico International Shipping analyst has a price target of US$6.76 per share, while the most pessimistic values it at US$4.62. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await d'Amico International Shipping shareholders.

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 34% by the end of 2025. This indicates a significant reduction from annual growth of 14% 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 0.5% 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 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, with sales apparently performing well even though revenue growth expected to decline against the wider market this year. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at d'Amico International Shipping.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on d'Amico International Shipping that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology 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 with high insider ownership.

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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.