Growth Investors: Industry Analysts Just Upgraded Their NVP S.p.A. (BIT:NVP) Revenue Forecasts By 10%

NVP S.p.A. (BIT:NVP) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, NVP's twin analysts are now forecasting revenues of €33m in 2024. This would be a satisfactory 6.2% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 282% to €0.36. Prior to this update, the analysts had been forecasting revenues of €30m and earnings per share (EPS) of €0.35 in 2024. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

See our latest analysis for NVP

It will come as no surprise to learn that the analysts have increased their price target for NVP 16% to €8.03 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NVP's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.2% growth on an annualised basis. This is compared to a historical growth rate of 36% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.0% annually. Even after the forecast slowdown in growth, it seems obvious that NVP is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at NVP.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for 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.