Celebrations may be in order for IQGeo Group plc (LON:IQG) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that IQGeo Group will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 4.3% over the past week, closing at UK£1.33. Could this big upgrade push the stock even higher?
Following the upgrade, the current consensus from IQGeo Group's one analyst is for revenues of UK£21m in 2022 which - if met - would reflect a major 52% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of UK£17m in 2022. The consensus has definitely become more optimistic, showing a considerable lift to revenue forecasts.
There was no particular change to the consensus price target of UK£1.65, with IQGeo Group's latest outlook seemingly not enough to result in a change of valuation.
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. For example, we noticed that IQGeo Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 52% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 22% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. So it looks like IQGeo Group is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. The analyst also expects revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at IQGeo Group.
Better yet, IQGeo Group is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.
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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