Need To Know: Analysts Are Much More Bullish On Polenergia S.A. (WSE:PEP) Revenues

Polenergia S.A. (WSE:PEP) 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.

Following the latest upgrade, Polenergia's four analysts currently expect revenues in 2021 to be zł2.0b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of zł1.6b in 2021. It looks like there's been a clear increase in optimism around Polenergia, given the sizeable gain to revenue forecasts.

View our latest analysis for Polenergia

There was no particular change to the consensus price target of zł67.60, with Polenergia'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. The most optimistic Polenergia analyst has a price target of zł78.59 per share, while the most pessimistic values it at zł47.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Polenergia shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2021. Historically, Polenergia's sales have shrunk approximately 7.4% annually over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 11% per year. So it's pretty clear that, although revenues are improving, Polenergia is still expected to grow slower than the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Polenergia this year. They're also anticipating slower revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Polenergia.

Unsatisfied? We have analyst estimates for Polenergia going out to 2025, and you can see them free on our platform here.

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. 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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