Yahoo Finance Analysts Just Made An Incredible Upgrade To Their Quisitive Technology Solutions, Inc. (CVE:QUIS) Forecasts
Quisitive Technology Solutions, Inc. (CVE:QUIS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. 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. The market seems to be pricing in some improvement in the business too, with the stock up 7.9% over the past week, closing at CA$1.63. Could this big upgrade push the stock even higher?
After this upgrade, Quisitive Technology Solutions' six analysts are now forecasting revenues of US$84m in 2021. This would be a substantial 99% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.03 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of US$69m and earnings per share (EPS) of US$0.01 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Quisitive Technology Solutions
Despite these upgrades, the analysts have not made any major changes to their price target of CA$2.20, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Quisitive Technology Solutions analyst has a price target of CA$2.50 per share, while the most pessimistic values it at CA$1.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 pretty clear that there is an expectation that Quisitive Technology Solutions' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 73% growth on an annualised basis. This is compared to a historical growth rate of 132% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% annually. So it's pretty clear that, while Quisitive Technology Solutions' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
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 next 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 Quisitive Technology Solutions could be a good candidate for more research.
Analysts are clearly in love with Quisitive Technology Solutions at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other warning sign we've identified, for 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.
This article by Simply Wall St is general in nature. 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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