Industry Analysts Just Made A Notable Upgrade To Their Dom Development S.A. (WSE:DOM) Revenue Forecasts

Shareholders in Dom Development S.A. (WSE:DOM) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 10.0% over the past week, closing at zł132. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from Dom Development's four analysts is for revenues of zł1.9b in 2021 which - if met - would reflect a reasonable 5.5% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł1.6b in 2021. It looks like there's been a clear increase in optimism around Dom Development, given the nice increase in revenue forecasts.

View our latest analysis for Dom Development

There was no particular change to the consensus price target of zł119, with Dom Development's latest outlook seemingly not enough to result in a change of valuation. 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 Dom Development analyst has a price target of zł150 per share, while the most pessimistic values it at zł98.53. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Dom Development shareholders.

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. It's pretty clear that there is an expectation that Dom Development's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 5.5% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.9% per year. Even after the forecast slowdown in growth, it seems obvious that Dom Development is also expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Dom Development this year. 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 Dom Development.

Want to learn more? We have analyst estimates for Dom Development going out to 2025, and you can see them free on our platform here.

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