New Forecasts: Here's What Analysts Think The Future Holds For d'Amico International Shipping S.A. (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 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.

Following the latest upgrade, the current consensus, from the twin analysts covering d'Amico International Shipping, is for revenues of US$425m in 2023, which would reflect a concerning 23% reduction in d'Amico International Shipping's sales over the past 12 months. Before the latest update, the analysts were foreseeing US$377m of revenue in 2023. It looks like there's been a clear increase in optimism around d'Amico International Shipping, given the solid increase in revenue forecasts.

Check out our latest analysis for d'Amico International Shipping

We'd point out that there was no major changes to their price target of US$0.62, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. There are some variant perceptions on d'Amico International Shipping, with the most bullish analyst valuing it at US$0.58 and the most bearish at US$0.55 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the d'Amico International Shipping's past performance and to peers in the same 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 30% to the end of 2023. This tops off a historical decline of 1.6% 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 4.7% annually. So it's pretty clear that d'Amico International Shipping sales are expected to decline at a faster rate than the wider 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. 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.

Want to learn more? We have analyst estimates for d'Amico International Shipping going out to 2025, and you can see them free 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.