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Broker Revenue Forecasts For Marley Spoon AG (ASX:MMM) Are Surging Higher

Simply Wall St
·3-min read

Shareholders in Marley Spoon AG (ASX:MMM) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst has sharply increased their revenue numbers, with a view that Marley Spoon will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 60% to €3.45 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the latest consensus from Marley Spoon's sole analyst is for revenues of €237m in 2020, which would reflect a sizeable 83% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of €203m in 2020. It looks like there's been a clear increase in optimism around Marley Spoon, given the substantial gain in revenue forecasts.

See our latest analysis for Marley Spoon

earnings-and-revenue-growth
earnings-and-revenue-growth

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Marley Spoon's past performance and to peers in the same industry. It's clear from the latest estimates that Marley Spoon's rate of growth is expected to accelerate meaningfully, with the forecast 83% revenue growth noticeably faster than its historical growth of 44% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Marley Spoon to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Marley Spoon.

It's great to see the covering analyst upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.