New Forecasts: Here's What Analysts Think The Future Holds For Infrastrutture Wireless Italiane S.p.A. (BIT:INW)
Shareholders in Infrastrutture Wireless Italiane S.p.A. (BIT:INW) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 6.1% to €9.88 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the current consensus from Infrastrutture Wireless Italiane's four analysts is for revenues of €776m in 2020 which - if met - would reflect a major 96% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €429m in 2020. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
View our latest analysis for Infrastrutture Wireless Italiane
We'd point out that there was no major changes to their price target of €10.20, suggesting the latest estimates were not enough to shift their view on the value of the business. 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 Infrastrutture Wireless Italiane analyst has a price target of €10.70 per share, while the most pessimistic values it at €9.70. Even so, with a relatively close grouping of analyst estimates, it looks to us as though the analysts are quite confident in their valuations, suggesting that Infrastrutture Wireless Italiane is an easy business to forecast or that the underlying assumptions are knowable.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Infrastrutture Wireless Italiane'sgrowth to accelerate, with the forecast 96% growth ranking favourably alongside historical growth of 5.6% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.2% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Infrastrutture Wireless Italiane is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Infrastrutture Wireless Italiane this year. Analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Infrastrutture Wireless Italiane.
Thirsting for more data? We have analyst estimates for Infrastrutture Wireless Italiane 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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