Need To Know: Analysts Are Much More Bullish On A2A S.p.A. (BIT:A2A) Revenues

A2A S.p.A. (BIT:A2A) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that A2A will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from A2A's five analysts is for revenues of €13b in 2022 which - if met - would reflect a solid 14% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €10b in 2022. It looks like there's been a clear increase in optimism around A2A, given the chunky increase in revenue forecasts.

See our latest analysis for A2A

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that A2A's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 11% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect A2A to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at A2A.

Analysts are definitely bullish on A2A, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.