Industry Analysts Just Upgraded Their Bank Handlowy w Warszawie S.A. (WSE:BHW) Revenue Forecasts By 12%

Celebrations may be in order for Bank Handlowy w Warszawie S.A. (WSE:BHW) 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. The stock price has risen 4.3% to zł42.75 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.

Following the upgrade, the latest consensus from Bank Handlowy w Warszawie's five analysts is for revenues of zł2.2b in 2021, which would reflect a solid 19% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing zł2.0b of revenue in 2021. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

View our latest analysis for Bank Handlowy w Warszawie

The consensus price target rose 5.4% to zł39.27, with the analysts clearly more optimistic about Bank Handlowy w Warszawie'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. The most optimistic Bank Handlowy w Warszawie analyst has a price target of zł39.90 per share, while the most pessimistic values it at zł34.90. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bank Handlowy w Warszawie's past performance and to peers in the same industry. For example, we noticed that Bank Handlowy w Warszawie's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 19% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 1.3% 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 9.8% annually. So it looks like Bank Handlowy w Warszawie is expected to grow faster than its competitors, at least for a while.

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. 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 Bank Handlowy w Warszawie.

Analysts are clearly in love with Bank Handlowy w Warszawie at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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