Need To Know: Analysts Are Much More Bullish On KGHM Polska Miedz S.A. (WSE:KGH) Revenues

KGHM Polska Miedz S.A. (WSE:KGH) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The stock price has risen 4.6% to zł199 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for KGHM Polska Miedz from its nine analysts is for revenues of zł32b in 2021 which, if met, would be a sizeable 36% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł29b in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

Check out our latest analysis for KGHM Polska Miedz

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting KGHM Polska Miedz's growth to accelerate, with the forecast 36% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.4% 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 4.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that KGHM Polska Miedz is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at KGHM Polska Miedz.

Better yet, our automated discounted cash flow calculation (DCF) suggests KGHM Polska Miedz could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

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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