Industry analysts have just improved their Appreciate Group plc (LON:APP) revenue forecast by 15%
Appreciate plc group (LON:APP) Shareholders will have a reason to smile today as analysts deliver substantial improvements to this year’s forecast. Analysts have raised their revenue numbers sharply, on the expectation that Appreciate Group will make significantly more sales than they had previously expected. The share price rose 9.7% to £0.29 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest update is enough to reignite buyer interest in the stock.
Following the latest update, the three analysts at Appreciate Group currently expect revenue in 2023 to be £122m, which is roughly in line with the past 12 months. Prior to the latest estimates, analysts were forecasting revenue of £107m in 2023. The consensus has definitely turned more optimistic, showing a nice uptick in revenue forecasts.
See our latest analysis for Appreciate Group
There was no particular change in the consensus price target of UK£0.61, with Appreciate Group’s latest outlook not appearing to be sufficient to prompt a change in valuation. This is not the only conclusion we can draw from this data, however, as some investors also like to consider the discrepancy in estimates when evaluating analyst price targets. The most optimistic Appreciate Group analyst has a price target of £0.66 per share, while the most pessimistic puts it at £0.55. The low dispersion of estimates could suggest that the future of the company is relatively easy to assess or that analysts have a clear view of its prospects.
These estimates are interesting, but it can be useful to draw broader lines when seeing how the predictions compare, both to the Appreciate Group’s past performance and to peers in the same industry. We emphasize that Appreciate Group’s revenue growth is expected to slow, with the projected annualized growth rate of 1.7% through the end of 2023 being well below last year’s historic growth of 13%. By comparison, other companies in this sector covered by analysts are expected to grow their revenue by 25% per year. Given the expected slower growth, it seems obvious that Appreciate Group is also expected to grow more slowly than other players in the industry.
The most important takeaway from this upgrade is that analysts have raised their revenue estimates for this year. They also expect the company’s earnings to fare worse than the broader market. Given this year’s dramatic forecast update, it might be time to take another look at Appreciate Group.
Even better, our automated discounted cash flow (DCF) calculation suggests that Appreciate Group may be moderately undervalued. You can learn more about our assessment methodology on our platform here.
Of course, see the management of the company invest large sums of money in a stock can be just as useful as knowing if analysts are updating their estimates. So you can also search this free list of stocks that insiders buy.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.