Yahoo Finance Industry Analysts Just Upgraded Their Wagners Holding Company Limited (ASX:WGN) Revenue Forecasts By 14%
Wagners Holding Company Limited (ASX:WGN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Wagners Holding will make substantially more sales than they'd previously expected.
After the upgrade, the four analysts covering Wagners Holding are now predicting revenues of AU$331m in 2021. If met, this would reflect a meaningful 17% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing AU$291m of revenue in 2021. It looks like there's been a clear increase in optimism around Wagners Holding, given the decent improvement in revenue forecasts.
See our latest analysis for Wagners Holding
The consensus price target rose 50% to AU$2.39, with the analysts clearly more optimistic about Wagners Holding's prospects following this update. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Wagners Holding at AU$2.50 per share, while the most bearish prices it at AU$2.25. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wagners Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Wagners Holding's rate of growth is expected to accelerate meaningfully, with the forecast 37% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 6.2% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Wagners Holding to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Wagners Holding this year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Wagners Holding.
Analysts are clearly in love with Wagners Holding 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 1 other risk 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.
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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