News Flash: Analysts Just Made A Notable Upgrade To Their Wawel S.A. (WSE:WWL) Forecasts

Wawel S.A. (WSE:WWL) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Wawel from its one analyst is for revenues of zł677m in 2023 which, if met, would be a modest 3.4% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 6.6% to zł53.33. Before this latest update, the analyst had been forecasting revenues of zł603m and earnings per share (EPS) of zł27.12 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

View our latest analysis for Wawel

With these upgrades, we're not surprised to see that the analyst has lifted their price target 60% to zł628 per share.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wawel's past performance and to peers in the same industry. The analyst is definitely expecting Wawel's growth to accelerate, with the forecast 3.4% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 3.5% per year. Wawel is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Wawel.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Wawel that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

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.