Analysts Are Betting On ABC arbitrage SA (EPA:ABCA) With A Big Upgrade This Week
Shareholders in ABC arbitrage SA (EPA:ABCA) 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 analysts now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from ABC arbitrage's dual analysts is for revenues of €96m in 2026, which would reflect a sizeable 29% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing €70m of revenue in 2026. It looks like there's been a clear increase in optimism around ABC arbitrage, given the considerable lift to revenue forecasts.
Check out our latest analysis for ABC arbitrage
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that ABC arbitrage's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ABC arbitrage to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at ABC arbitrage.
Better yet, our automated discounted cash flow calculation (DCF) suggests ABC arbitrage could be moderately undervalued. You can learn more about our valuation methodology on our platform here.
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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.