Need To Know: Analysts Are Much More Bullish On Public Joint Stock Company Polyus (MCX:PLZL)

Shareholders in Public Joint Stock Company Polyus (MCX:PLZL) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 forecast from Polyus' eleven analysts is for revenues of US$487b in 2021, which would reflect a sizeable improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 22,391% to US$1,893. Prior to this update, the analysts had been forecasting revenues of US$415b and earnings per share (EPS) of US$1,611 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Polyus

Despite these upgrades, the analysts have not made any major changes to their price target of US$274, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Polyus analyst has a price target of US$26,490 per share, while the most pessimistic values it at US$16,218. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. With this in mind, we wouldn't rely too heavily on the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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 Polyus' rate of growth is expected to accelerate meaningfully, with the forecast exponential annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Polyus to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Polyus could be a good candidate for more research.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Polyus going out to 2025, and you can see them free on our platform here..

You can also see our analysis of Polyus' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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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