Broker Revenue Forecasts For Synektik Spólka Akcyjna (WSE:SNT) Are Surging Higher

Shareholders in Synektik Spólka Akcyjna (WSE:SNT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Synektik Spólka Akcyjna will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.9% over the past week, closing at zł146. Could this big upgrade push the stock even higher?

Following this upgrade, Synektik Spólka Akcyjna's dual analysts are forecasting 2024 revenues to be zł591m, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł518m in 2024. It looks like there's been a clear increase in optimism around Synektik Spólka Akcyjna, given the decent improvement in revenue forecasts.

See our latest analysis for Synektik Spólka Akcyjna

Additionally, the consensus price target for Synektik Spólka Akcyjna increased 17% to zł159, showing a clear increase in optimism from the analysts involved.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 1.8% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 38% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Synektik Spólka Akcyjna is expected to lag 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 anticipating slower revenue growth 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Synektik Spólka Akcyjna.

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

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.

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