Upgrade: Analysts Just Made A Sizeable Increase To Their Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) Forecasts

Celebrations may be in order for Aeroporto Guglielmo Marconi di Bologna S.p.A. (BIT:ADB) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. 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 current consensus from Aeroporto Guglielmo Marconi di Bologna's solitary analyst is for revenues of €122m in 2022 which - if met - would reflect a meaningful 13% increase on its sales over the past 12 months. Statutory earnings per share are expected to be €0.80, roughly flat on the last 12 months. Previously, the analyst had been modelling revenues of €107m and earnings per share (EPS) of €0.49 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

See our latest analysis for Aeroporto Guglielmo Marconi di Bologna

As a result, it might be a surprise to see that the analyst has cut their price target 9.7% to €8.40, which could suggest the forecast improvement in performance is not expected to last.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aeroporto Guglielmo Marconi di Bologna's past performance and to peers in the same industry. For example, we noticed that Aeroporto Guglielmo Marconi di Bologna's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 29% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 9.5% 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 6.3% annually. Not only are Aeroporto Guglielmo Marconi di Bologna's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

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. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The declining price target is a puzzle, but still - with a serious upgrade to this year's expectations, it might be time to take another look at Aeroporto Guglielmo Marconi di Bologna.

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 Aeroporto Guglielmo Marconi di Bologna going out as far as 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.