Need To Know: Analysts Are Much More Bullish On Wirtualna Polska Holding S.A. (WSE:WPL)

Wirtualna Polska Holding S.A. (WSE:WPL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Wirtualna Polska Holding's four analysts are now forecasting revenues of zł799m in 2021. This would be a major 26% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 55% to zł4.19. Before this latest update, the analysts had been forecasting revenues of zł687m and earnings per share (EPS) of zł3.71 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Wirtualna Polska Holding

Despite these upgrades, the analysts have not made any major changes to their price target of zł93.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Wirtualna Polska Holding analyst has a price target of zł124 per share, while the most pessimistic values it at zł80.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wirtualna Polska Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Wirtualna Polska Holding's rate of growth is expected to accelerate meaningfully, with the forecast 26% annualised revenue growth to the end of 2021 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 16% 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 biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Wirtualna Polska Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Wirtualna Polska Holding analysts - going out to 2025, and you can see them free on our platform here.

We also provide an overview of the Wirtualna Polska Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. 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.
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