This Just In: Analysts Are Boosting Their Saras S.p.A. (BIT:SRS) Outlook for This Year

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 consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 8.2% to €1.03 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from Saras' four analysts is for revenues of €13b in 2022, which would reflect a modest 6.8% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 103% to €0.65. Previously, the analysts had been modelling revenues of €12b and earnings per share (EPS) of €0.56 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Saras

Of course, another way to look at these forecasts is to place them into context against the industry itself. 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 0.8% 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 6.8% per year. So it's pretty clear that Saras is expected to grow faster than the wider 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. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Saras' future.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Saras analysts - going out to 2024, and you can see them 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.