Analysts Just Made An Incredible Upgrade To Their SNGN Romgaz SA (BVB:SNG) Forecasts

Celebrations may be in order for SNGN Romgaz SA (BVB:SNG) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for SNGN Romgaz from its five analysts is for revenues of RON4.9b in 2021 which, if met, would be a sizeable 24% increase on its sales over the past 12 months. Statutory earnings per share are presumed to leap 50% to RON4.41. Previously, the analysts had been modelling revenues of RON4.4b and earnings per share (EPS) of RON3.28 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 SNGN Romgaz

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.9% to RON34.88 per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on SNGN Romgaz, with the most bullish analyst valuing it at RON40.20 and the most bearish at RON28.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that SNGN Romgaz's rate of growth is expected to accelerate meaningfully, with the forecast 33% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 4.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SNGN Romgaz to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, SNGN Romgaz could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for SNGN Romgaz going out to 2023, and you can see them free on our platform here..

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. 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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