New Forecasts: Here's What Analysts Think The Future Holds For Naftna Industrija Srbije a.d. (BELEX:NIIS)

Naftna Industrija Srbije a.d. (BELEX:NIIS) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Naftna Industrija Srbije a.d's single analyst is for revenues of дин569b in 2024 which - if met - would reflect a sizeable 38% increase on its sales over the past 12 months. Statutory earnings per share are anticipated to dip 5.0% to дин260 in the same period. Previously, the analyst had been modelling revenues of дин515b and earnings per share (EPS) of дин220 in 2024. 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 Naftna Industrija Srbije a.d

It will come as no surprise to learn that the analyst has increased their price target for Naftna Industrija Srbije a.d 17% to дин1,120 on the back of these upgrades.

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. The analyst is definitely expecting Naftna Industrija Srbije a.d's growth to accelerate, with the forecast 38% annualised growth to the end of 2024 ranking favourably alongside historical growth of 16% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.9% per year. It seems obvious that as part of the brighter growth outlook, Naftna Industrija Srbije a.d is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Naftna Industrija Srbije a.d.

The covering analyst is clearly in love with Naftna Industrija Srbije a.d at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 2 other concerns we've identified, for 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. 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.