Jastrzebska Spólka Weglowa S.A. (WSE:JSW) Analysts Just Slashed This Year's Revenue Estimates By 11%

The analysts covering Jastrzebska Spólka Weglowa S.A. (WSE:JSW) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. Shares are up 6.2% to zł71.50 in the past week. We'd be curious to see if the downgrade is enough to reverse investor sentiment on the business.

After the downgrade, the four analysts covering Jastrzebska Spólka Weglowa are now predicting revenues of zł16b in 2022. If met, this would reflect a major 22% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł19b in 2022. It looks like forecasts have become a fair bit less optimistic on Jastrzebska Spólka Weglowa, given the measurable cut to revenue estimates.

See our latest analysis for Jastrzebska Spólka Weglowa

There was no particular change to the consensus price target of zł84.61, with Jastrzebska Spólka Weglowa's latest outlook seemingly not enough to result in a change of valuation. 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. The most optimistic Jastrzebska Spólka Weglowa analyst has a price target of zł100.00 per share, while the most pessimistic values it at zł59.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 analysts are definitely expecting Jastrzebska Spólka Weglowa's growth to accelerate, with the forecast 30% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.4% 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 0.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Jastrzebska Spólka Weglowa to grow faster than the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Jastrzebska Spólka Weglowa this year. The analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Jastrzebska Spólka Weglowa after today.

Of course, there's always more to the story. We have estimates for Jastrzebska Spólka Weglowa from its four analysts out until 2024, and you can see them 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 downgrading their estimates. So you may also wish to search this free list of stocks 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.