Broker Revenue Forecasts For Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) Are Surging Higher

Celebrations may be in order for Controladora Vuela Compañía de Aviación, S.A.B. de C.V. (BMV:VOLARA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Controladora Vuela Compañía de Aviación. de's twelve analysts are now forecasting revenues of Mex$41b in 2021. This would be a huge 33% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of Mex$37b in 2021. It looks like there's been a clear increase in optimism around Controladora Vuela Compañía de Aviación. de, given the decent improvement in revenue forecasts.

Check out our latest analysis for Controladora Vuela Compañía de Aviación. de

There was no particular change to the consensus price target of Mex$40.30, with Controladora Vuela Compañía de Aviación. de's latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Controladora Vuela Compañía de Aviación. de, with the most bullish analyst valuing it at Mex$58.00 and the most bearish at Mex$22.00 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Controladora Vuela Compañía de Aviación. de's rate of growth is expected to accelerate meaningfully, with the forecast 78% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 4.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Controladora Vuela Compañía de Aviación. 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 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 Controladora Vuela Compañía de Aviación. de.

Analysts are definitely bullish on Controladora Vuela Compañía de Aviación. de, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 2 other flags we've identified, for 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. 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.
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