Masi Agricola S.p.A. (BIT:MASI) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's 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.
Following the upgrade, the latest consensus from Masi Agricola's one analyst is for revenues of €66m in 2021, which would reflect a substantial 28% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 374% to €0.13. Previously, the analyst had been modelling revenues of €60m and earnings per share (EPS) of €0.08 in 2021. So it seems there's been a definite increase in optimism about Masi Agricola's future following the latest consensus numbers, with a massive increase in the earnings per share forecasts in particular.
It will come as no surprise to learn that the analyst has increased their price target for Masi Agricola 8.8% to €3.10 on the back of these upgrades.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. For example, we noticed that Masi Agricola's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 28% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 2.5% 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 grow 6.0% annually. So it looks like Masi Agricola is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Masi Agricola could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Masi Agricola going out as far as 2023, 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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