Yahoo Finance Growth Investors: Industry Analysts Just Upgraded Their Aemetis, Inc. (NASDAQ:AMTX) Revenue Forecasts By 12%
Aemetis, Inc. (NASDAQ:AMTX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Aemetis will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Aemetis too, with the stock up 80% to US$3.22 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the latest consensus from Aemetis' six analysts is for revenues of US$298m in 2023, which would reflect a major 44% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$265m in 2023. It looks like there's been a clear increase in optimism around Aemetis, given the nice increase in revenue forecasts.
Check out our latest analysis for Aemetis
We'd point out that there was no major changes to their price target of US$11.05, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. There are some variant perceptions on Aemetis, with the most bullish analyst valuing it at US$28.00 and the most bearish at US$2.00 per share. We would probably assign less value to the forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Aemetis' rate of growth is expected to accelerate meaningfully, with the forecast 63% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 7.1% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 3.6% per year. So it's clear with the acceleration in growth, Aemetis is expected to grow meaningfully 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 for revenues to perform better than companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Aemetis.
Analysts are definitely bullish on Aemetis, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 1 other risk 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.
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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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