Yahoo Finance Need To Know: Analysts Are Much More Bullish On M.P. Evans Group PLC (LON:MPE) Revenues
M.P. Evans Group PLC (LON:MPE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The stock price has risen 5.0% to UK£10.50 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
Following the upgrade, the current consensus from M.P. Evans Group's dual analysts is for revenues of US$298m in 2022 which - if met - would reflect a credible 7.9% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$236m in 2022. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.
Check out our latest analysis for M.P. Evans Group
The consensus price target rose 5.2% to US$14.78, with the analysts clearly more optimistic about M.P. Evans Group'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. The most optimistic M.P. Evans Group analyst has a price target of US$11.48 per share, while the most pessimistic values it at US$11.09. 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.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that M.P. Evans Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.6% annually. Even after the forecast slowdown in growth, it seems obvious that M.P. Evans Group is also expected to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for M.P. Evans Group 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 M.P. Evans Group.
Hungry for more information? We have analyst estimates for M.P. Evans Group going out to 2024, and you can see them 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.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
