News Flash: Analysts Just Made A Meaningful Upgrade To Their Comp S.A. (WSE:CMP) Forecasts

Comp S.A. (WSE:CMP) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investor sentiment seems to be improving too, with the share price up 9.8% to zł43.50 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for Comp from its solitary analyst is for revenues of zł752m in 2023 which, if met, would be a satisfactory 2.2% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 226% to zł4.67. Previously, the analyst had been modelling revenues of zł637m and earnings per share (EPS) of zł3.05 in 2023. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Comp

With these upgrades, we're not surprised to see that the analyst has lifted their price target 17% to zł53.90 per share.

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. We would highlight that Comp's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2023 being well below the historical 7.3% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.7% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Comp.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for next year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Comp could be worth investigating further.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 4 potential concerns with Comp, including the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 3 other concerns we've identified .

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading 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.