Yahoo Finance Analysts Just Made A Massive Upgrade To Their Koninklijke DSM N.V. (AMS:DSM) Forecasts
Celebrations may be in order for Koninklijke DSM N.V. (AMS:DSM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
After this upgrade, Koninklijke DSM's nine analysts are now forecasting revenues of €12b in 2023. This would be a major 45% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 59% to €4.78. Prior to this update, the analysts had been forecasting revenues of €8.5b and earnings per share (EPS) of €3.45 in 2023. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Koninklijke DSM
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of €149, suggesting that the forecast performance does not have a long term impact on the company's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Koninklijke DSM analyst has a price target of €184 per share, while the most pessimistic values it at €122. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. One thing stands out from these estimates, which is that Koninklijke DSM is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.8% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.1% annually. So it looks like Koninklijke DSM is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Koninklijke DSM could be a good candidate for more research.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Koninklijke DSM going out to 2025, and you can see them free on our platform here..
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.
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