Need To Know: Analysts Are Much More Bullish On Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE:PKN)

Shareholders in Polski Koncern Naftowy ORLEN Spólka Akcyjna (WSE:PKN) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Polski Koncern Naftowy ORLEN Spólka Akcyjna's seven analysts are now forecasting revenues of zł406b in 2023. This would be a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to crater 53% to zł16.84 in the same period. Before this latest update, the analysts had been forecasting revenues of zł338b and earnings per share (EPS) of zł14.96 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Polski Koncern Naftowy ORLEN Spólka Akcyjna

Despite these upgrades, the analysts have not made any major changes to their price target of zł77.39, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Polski Koncern Naftowy ORLEN Spólka Akcyjna at zł100.00 per share, while the most bearish prices it at zł61.00. 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 period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 25% growth on an annualised basis. That is in line with its 22% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues fall 5.0% per year. So it's clear that not only is revenue growth expected to be maintained, but Polski Koncern Naftowy ORLEN Spólka Akcyjna is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Polski Koncern Naftowy ORLEN Spólka Akcyjna.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential warning signs with Polski Koncern Naftowy ORLEN Spólka Akcyjna, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs 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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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.