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 consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investors have been pretty optimistic on Cognor Holding too, with the stock up 27% to zł2.46 over the past week. Could this upgrade be enough to drive the stock even higher?
After the upgrade, the solo analyst covering Cognor Holding is now predicting revenues of zł2.3b in 2021. If met, this would reflect a huge 29% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing zł1.9b of revenue in 2021. It looks like there's been a clear increase in optimism around Cognor Holding, given the considerable lift to revenue forecasts.
The consensus price target rose 26% to zł2.89, with the analyst clearly more optimistic about Cognor Holding's prospects following this update.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Cognor Holding's rate of growth is expected to accelerate meaningfully, with the forecast 29% revenue growth noticeably faster than its historical growth of 8.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.5% next 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 most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for next year. The analyst also expects revenues to grow faster than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Cognor Holding.
Need some more information? One Cognor Holding broker/analyst has provided estimates out to 2025, which can be seen 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.
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