Analysts Are Betting On Saras S.p.A. (BIT:SRS) With A Big Upgrade This Week

Saras S.p.A. (BIT:SRS) 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. Saras has also found favour with investors, with the stock up an impressive 15% to €0.66 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for Saras from its three analysts is for revenues of €9.8b in 2022 which, if met, would be a decent 14% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing €8.1b of revenue in 2022. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.

See our latest analysis for Saras

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 Saras' 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 3.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 3.1% per year. Not only are Saras' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Saras this year. They're also forecasting more rapid revenue growth than 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 Saras.

Still got questions? We have analyst estimates for Saras going out to 2024, 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.