Upgrade: Analysts Just Made A Captivating Increase To Their D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Forecasts
D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.
After the upgrade, the three analysts covering D-Market Elektronik Hizmetler ve Ticaret are now predicting revenues of ₺25b in 2023. If met, this would reflect a major 35% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting ₺0.25 in per-share earnings. However, before this estimates update, the consensus had been expecting revenues of ₺23b and ₺1.54 per share in losses. So we can see that this has sparked a pretty clear upgrade to expectations, with higher revenues anticipated to lead to profit sooner than previously forecast.
See our latest analysis for D-Market Elektronik Hizmetler ve Ticaret
It will come as no surprise to learn that the analysts have increased their price target for D-Market Elektronik Hizmetler ve Ticaret 5.1% to ₺85.65 on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on D-Market Elektronik Hizmetler ve Ticaret, with the most bullish analyst valuing it at ₺127 and the most bearish at ₺60.59 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the D-Market Elektronik Hizmetler ve Ticaret's past performance and to peers in the same industry. We would highlight that D-Market Elektronik Hizmetler ve Ticaret's revenue growth is expected to slow, with the forecast 35% annualised growth rate until the end of 2023 being well below the historical 137% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% annually. Even after the forecast slowdown in growth, it seems obvious that D-Market Elektronik Hizmetler ve Ticaret is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that there is now an expectation for D-Market Elektronik Hizmetler ve Ticaret to become profitable this year, compared to previous expectations of a loss. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, D-Market Elektronik Hizmetler ve Ticaret could be worth investigating further.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for D-Market Elektronik Hizmetler ve Ticaret going out to 2025, 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.
