Industry Analysts Just Made A Notable Upgrade To Their Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE:PKN) Revenue Forecasts

Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE:PKN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After the upgrade, the nine analysts covering Polski Koncern Naftowy ORLEN Spólka Akcyjna are now predicting revenues of zł150b in 2022. If met, this would reflect a solid 14% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing zł136b of revenue in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

View our latest analysis for Polski Koncern Naftowy ORLEN Spólka Akcyjna

There was no particular change to the consensus price target of zł87.11, with Polski Koncern Naftowy ORLEN Spólka Akcyjna'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. There are some variant perceptions on Polski Koncern Naftowy ORLEN Spólka Akcyjna, with the most bullish analyst valuing it at zł110 and the most bearish at zł65.00 per share. 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 Polski Koncern Naftowy ORLEN Spólka Akcyjna 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. The analysts are definitely expecting Polski Koncern Naftowy ORLEN Spólka Akcyjna's growth to accelerate, with the forecast 14% annualised growth to the end of 2022 ranking favourably alongside historical growth of 3.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Polski Koncern Naftowy ORLEN Spólka Akcyjna 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. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Polski Koncern Naftowy ORLEN Spólka Akcyjna.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Polski Koncern Naftowy ORLEN Spólka Akcyjna that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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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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.