Yahoo Finance This Analyst Just Wrote A Brand New Outlook For Belvoir Group PLC's (LON:BLV) Business
Belvoir Group PLC (LON:BLV) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Belvoir Group has also found favour with investors, with the stock up a notable 10% to UK£2.50 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After the upgrade, the solo analyst covering Belvoir Group is now predicting revenues of UK£26m in 2021. If met, this would reflect a major 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 18% to UK£0.18. Prior to this update, the analyst had been forecasting revenues of UK£23m and earnings per share (EPS) of UK£0.14 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.
See our latest analysis for Belvoir Group
With these upgrades, we're not surprised to see that the analyst has lifted their price target 16% to UK£3.32 per share.
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 period to the end of 2021 brings more of the same, according to the analyst, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.2% annually. So not only is Belvoir Group expected to maintain its revenue growth despite the wider downturn, it's also forecast to grow faster than the industry as a whole.
The Bottom Line
The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. 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 Belvoir Group.
Better yet, our automated discounted cash flow calculation (DCF) suggests Belvoir Group could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
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.
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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