Industry Analysts Just Upgraded Their TAURON Polska Energia S.A. (WSE:TPE) Revenue Forecasts By 14%

Shareholders in TAURON Polska Energia S.A. (WSE:TPE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 TAURON Polska Energia's six analysts is for revenues of zł30b in 2022, which would reflect a meaningful 19% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 253% to zł0.68. Previously, the analysts had been modelling revenues of zł27b and earnings per share (EPS) of zł0.68 in 2022. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for TAURON Polska Energia

The consensus price target increased 9.3% to zł5.08, with an improved revenue forecast carrying the promise of a more valuable business, in time. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values TAURON Polska Energia at zł6.40 per share, while the most bearish prices it at zł4.10. 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 TAURON Polska Energia shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TAURON Polska Energia's past performance and to peers in the same industry. It's clear from the latest estimates that TAURON Polska Energia's rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 6.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that TAURON Polska Energia is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TAURON Polska Energia.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for TAURON Polska Energia going out to 2024, and you can see them free on our platform here..

We also provide an overview of the TAURON Polska Energia 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. 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.