News Flash: Analysts Just Made A Captivating Upgrade To Their d'Amico International Shipping S.A. (BIT:DIS) Forecasts

Shareholders in d'Amico International Shipping S.A. (BIT:DIS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on d'Amico International Shipping too, with the stock up 16% to €0.21 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the three analysts covering d'Amico International Shipping are now predicting revenues of US$320m in 2022. If met, this would reflect a modest 6.7% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$269m in 2022. It looks like there's been a clear increase in optimism around d'Amico International Shipping, given the nice gain to revenue forecasts.

See our latest analysis for d'Amico International Shipping

Additionally, the consensus price target for d'Amico International Shipping increased 17% to US$0.25, showing a clear increase in optimism from the analysts involved. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values d'Amico International Shipping at US$0.27 per share, while the most bearish prices it at US$0.21. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that d'Amico International Shipping's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 14% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 9.0% 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 decline 5.1% per year. So it's pretty clear that d'Amico International Shipping is expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for d'Amico International Shipping this year. Analysts also expect revenues to perform better than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. 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.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect d'Amico International Shipping to be able to reach break-even within the next few years. You can learn more about these forecasts, 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. 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.