Stock Analysis

One Credit Bank of Moscow (public joint-stock company) (MCX:CBOM) Analyst Just Slashed Their Estimates By A Sizeable 13%

MISX:CBOM
Source: Shutterstock

The analyst covering Credit Bank of Moscow (public joint-stock company) (MCX:CBOM) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

Following the downgrade, the most recent consensus for Credit Bank of Moscow from its sole analyst is for revenues of ₽65b in 2020 which, if met, would be a substantial 65% increase on its sales over the past 12 months. Before the latest update, the analyst was foreseeing ₽75b of revenue in 2020. It looks like forecasts have become a fair bit less optimistic on Credit Bank of Moscow, given the substantial drop in revenue estimates.

View our latest analysis for Credit Bank of Moscow

MISX:CBOM Past and Future Earnings March 27th 2020
MISX:CBOM Past and Future Earnings March 27th 2020

The consensus price target fell 20% to ₽5.50, with the analyst clearly less optimistic about Credit Bank of Moscow's valuation following this update.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Credit Bank of Moscow's growth to accelerate, with the forecast 65% growth ranking favourably alongside historical growth of 27% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Credit Bank of Moscow is expected to grow much faster than its industry.

Advertisement

The Bottom Line

The most important thing to take away is that the analyst cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Credit Bank of Moscow going forwards.

Still got questions? We have forecasts for Credit Bank of Moscow from one covering analyst, 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.