Broker Revenue Forecasts For Wirtualna Polska Holding S.A. (WSE:WPL) Are Surging Higher

Wirtualna Polska Holding S.A. (WSE:WPL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Wirtualna Polska Holding's twin analysts is for revenues of zł1.3b in 2023, which would reflect a major 28% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł1.0b in 2023. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

Our analysis indicates that WPL is potentially undervalued!

There was no particular change to the consensus price target of zł121, with Wirtualna Polska Holding's latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Wirtualna Polska Holding at zł146 per share, while the most bearish prices it at zł105. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Wirtualna Polska Holding's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 14% p.a. 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 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wirtualna Polska 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 analysts lifted their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Wirtualna Polska Holding.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Wirtualna Polska Holding that suggests the company could be somewhat 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.

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.