News Flash: Analysts Just Made A Notable Upgrade To Their Prysmian S.p.A. (BIT:PRY) Forecasts

Prysmian S.p.A. (BIT:PRY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 5.5% to €112 over the past 7 days. Could this big upgrade push the stock even higher?

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Following the upgrade, the current consensus from Prysmian's 19 analysts is for revenues of €29b in 2027 which - if met - would reflect a substantial 28% increase on its sales over the past 12 months. Per-share earnings are expected to jump 57% to €6.41. Previously, the analysts had been modelling revenues of €25b and earnings per share (EPS) of €6.05 in 2027. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.

View our latest analysis for Prysmian

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of €153, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. The analysts are definitely expecting Prysmian's growth to accelerate, with the forecast 22% annualised growth to the end of 2027 ranking favourably alongside historical growth of 9.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Prysmian is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Prysmian.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Prysmian analysts - going out to 2028, 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 with high insider ownership.

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