Yahoo Finance Upgrade: Analysts Just Made A Captivating Increase To Their Digital Turbine, Inc. (NASDAQ:APPS) Forecasts
Digital Turbine, Inc. (NASDAQ:APPS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next 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. Digital Turbine has also found favour with investors, with the stock up a remarkable 26% to US$77.19 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 Digital Turbine's seven analysts is for revenues of US$392m in 2022, which would reflect a major 52% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 92% to US$0.85. Prior to this update, the analysts had been forecasting revenues of US$350m and earnings per share (EPS) of US$0.72 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
See our latest analysis for Digital Turbine
It will come as no surprise to learn that the analysts have increased their price target for Digital Turbine 43% to US$79.29 on the back of these upgrades. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Digital Turbine analyst has a price target of US$77.00 per share, while the most pessimistic values it at US$31.50. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Digital Turbine's rate of growth is expected to accelerate meaningfully, with the forecast 52% revenue growth noticeably faster than its historical growth of 30% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Digital Turbine to grow faster than the wider industry.
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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Digital Turbine could be worth investigating further.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Digital Turbine 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.
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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