Industry Analysts Just Upgraded Their DiaSorin S.p.A. (BIT:DIA) Revenue Forecasts By 12%

Celebrations may be in order for DiaSorin S.p.A. (BIT:DIA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the five analysts covering DiaSorin are now predicting revenues of €1.2b in 2021. If met, this would reflect a huge 24% improvement in sales compared to the last 12 months. Per-share earnings are expected to rise 6.6% to €5.62. Before this latest update, the analysts had been forecasting revenues of €1.1b and earnings per share (EPS) of €5.59 in 2021. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for DiaSorin

Analysts increased their price target 14% to €183, perhaps signalling that higher revenues are a strong leading indicator for DiaSorin's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on DiaSorin, with the most bullish analyst valuing it at €197 and the most bearish at €112 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the DiaSorin's past performance and to peers in the same industry. It's clear from the latest estimates that DiaSorin's rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 9.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that DiaSorin is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at DiaSorin.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple DiaSorin analysts - going out to 2023, 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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