Analysts' Revenue Estimates For Grupo Herdez, S.A.B. de C.V. (BMV:HERDEZ) Are Surging Higher

Shareholders in Grupo Herdez, S.A.B. de C.V. (BMV:HERDEZ) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Grupo Herdez. de will make substantially more sales than they'd previously expected.

After the upgrade, the dual analysts covering Grupo Herdez. de are now predicting revenues of Mex$37b in 2023. If met, this would reflect a decent 18% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of Mex$32b in 2023. It looks like there's been a clear increase in optimism around Grupo Herdez. de, given the substantial gain in revenue forecasts.

See our latest analysis for Grupo Herdez. de

The consensus price target rose 6.6% to Mex$54.17, with the analysts clearly more optimistic about Grupo Herdez. de's prospects following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Grupo Herdez. de at Mex$60.00 per share, while the most bearish prices it at Mex$49.50. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Grupo Herdez. de's growth to accelerate, with the forecast 14% annualised growth to the end of 2023 ranking favourably alongside historical growth of 8.5% per annum 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 4.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Grupo Herdez. de 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 next year. The analysts also expect revenues 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Grupo Herdez. de.

Looking to learn more? At least one of Grupo Herdez. de's dual analysts has provided estimates out to 2025, which can be seen 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.