Develia S.A. (WSE:DVL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Develia will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from Develia's four analysts is for revenues of zł1.7b in 2024 which - if met - would reflect a satisfactory 5.2% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł1.5b in 2024. It looks like there's been a clear increase in optimism around Develia, given the decent improvement in revenue forecasts.
See our latest analysis for Develia
Additionally, the consensus price target for Develia increased 12% to zł6.62, showing a clear increase in optimism from the analysts involved.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Develia's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Develia.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Develia this year. They're also anticipating slower revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Develia.
Better yet, our automated discounted cash flow calculation (DCF) suggests Develia 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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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.
About WSE:DVL
Develia
Through its subsidiaries, buys, develops, rents, manages, and sells real estate properties in Poland.
Very undervalued with excellent balance sheet.
