Broker Revenue Forecasts For Bank Handlowy w Warszawie S.A. (WSE:BHW) Are Surging Higher

Bank Handlowy w Warszawie S.A. (WSE:BHW) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The stock price has risen 8.8% to zł46.80 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the consensus from Bank Handlowy w Warszawie's five analysts is for revenues of zł2.2b in 2021, which would reflect a perceptible 7.3% decline in sales compared to the last year of performance. Prior to the latest estimates, the analysts were forecasting revenues of zł2.0b in 2021. It looks like there's been a clear increase in optimism around Bank Handlowy w Warszawie, given the nice gain to revenue forecasts.

See our latest analysis for Bank Handlowy w Warszawie

Additionally, the consensus price target for Bank Handlowy w Warszawie increased 6.0% to zł41.62, showing a clear increase in optimism from the analysts involved. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bank Handlowy w Warszawie analyst has a price target of zł49.50 per share, while the most pessimistic values it at zł34.90. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. One more thing stood out to us about these estimates, and it's the idea that Bank Handlowy w Warszawie's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 9.6% to the end of 2021. This tops off a historical decline of 0.06% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.8% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Bank Handlowy w Warszawie to suffer worse 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. They're also anticipating slower revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Bank Handlowy w Warszawie.

Of course, there's always more to the story. We have analyst estimates for Bank Handlowy w Warszawie going out to 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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