Broker Revenue Forecasts For Cognor Holding S.A. (WSE:COG) Are Surging Higher

Shareholders in Cognor Holding S.A. (WSE:COG) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst has sharply increased their revenue numbers, with a view that Cognor Holding will make substantially more sales than they'd previously expected.

After the upgrade, the solitary analyst covering Cognor Holding is now predicting revenues of zł3.3b in 2022. If met, this would reflect a major 34% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing zł2.9b of revenue in 2022. It looks like there's been a clear increase in optimism around Cognor Holding, given the nice increase in revenue forecasts.

See our latest analysis for Cognor Holding

The consensus price target fell 6.1% to zł4.80, with the analyst clearly less optimistic about Cognor Holding's valuation following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Cognor Holding at zł5.50 per share, while the most bearish prices it at zł4.10. Still, with such a tight range of estimates, it suggests the analyst has a pretty good idea of what they think the company is worth.

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 analyst is definitely expecting Cognor Holding's growth to accelerate, with the forecast 26% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Cognor Holding is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Cognor Holding next year. The analyst also expects revenues to grow faster than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Cognor Holding's future valuation. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Cognor Holding.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential risks with Cognor Holding, including concerns around earnings quality. You can learn more, and discover the 2 other risks we've identified, for free 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 that insiders are buying.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.