One thing we could say about the analysts on Sistema Public Joint Stock Financial Corporation (MCX:AFKS) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative. At ₽13.30, shares are up 9.4% in the past 7 days. Investors could be forgiven for changing their mind on the business following the downgrade; but it's not clear if the revised forecasts will lead to selling activity.

Following the downgrade, the most recent consensus for Sistema Financial from its six analysts is for revenues of ₽875b in 2020 which, if met, would be a modest 6.0% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of ₽995b in 2020. It looks like forecasts have become a fair bit less optimistic on Sistema Financial, given the substantial drop in revenue estimates.

See our latest analysis for Sistema Financial

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. We would highlight that Sistema Financial's revenue growth is expected to slow, with forecast 6.0% increase next year well below the historical 7.9% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.9% next year. So it's pretty clear that, while Sistema Financial's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Sistema Financial next year. The analysts also expect revenues to grow faster than the wider market. Overall, given the drastic downgrade to next year's forecasts, we'd be feeling a little more wary of Sistema Financial going forwards.

Unanswered questions? We have estimates for Sistema Financial from its six analysts out until 2023, 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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