News Flash: Analysts Just Made A Meaningful Upgrade To Their d'Amico International Shipping S.A. (BIT:DIS) 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 statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 13% to €7.65 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the consensus from d'Amico International Shipping's four analysts is for revenues of US$429m in 2024, which would reflect a chunky 19% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to reduce 6.0% to US$1.52 in the same period. Before this latest update, the analysts had been forecasting revenues of US$390m and earnings per share (EPS) of US$1.21 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See 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 6.3% to US$8.55 per share. 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. There are some variant perceptions on d'Amico International Shipping, with the most bullish analyst valuing it at US$9.69 and the most bearish at US$7.85 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company 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. 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 11% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.6% per year. 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 upgraded their earnings per share estimates for this 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 this year. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be 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. For more information, you can click through to our platform to learn more about our valuation approach.

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.