Industry Analysts Just Made A Notable Upgrade To Their Public Joint-Stock Company PhosAgro (MCX:PHOR) Revenue Forecasts

Public Joint-Stock Company PhosAgro (MCX:PHOR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from PhosAgro's eight analysts is for revenues of ₽393b in 2021, which would reflect a huge 42% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₽325b in 2021. It looks like there's been a clear increase in optimism around PhosAgro, given the sizeable gain to revenue forecasts.

Check out our latest analysis for PhosAgro

There was no particular change to the consensus price target of US$55.08, with PhosAgro's latest outlook seemingly not enough to result in a change of valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic PhosAgro analyst has a price target of US$4,634 per share, while the most pessimistic values it at US$3,085. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that PhosAgro's rate of growth is expected to accelerate meaningfully, with the forecast 101% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 8.4% p.a. 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 4.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that PhosAgro is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at PhosAgro.

Analysts are definitely bullish on PhosAgro, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

We also provide an overview of the PhosAgro 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. 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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