Yahoo Finance Need To Know: Analysts Are Much More Bullish On AirBoss of America Corp. (TSE:BOS) Revenues
AirBoss of America Corp. (TSE:BOS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that AirBoss of America will make substantially more sales than they'd previously expected. AirBoss of America has also found favour with investors, with the stock up a remarkable 14% to CA$39.59 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 most recent consensus for AirBoss of America from its five analysts is for revenues of US$682m in 2021 which, if met, would be a sizeable 36% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$429m of revenue in 2021. It looks like there's been a clear increase in optimism around AirBoss of America, given the great increase in revenue forecasts.
See our latest analysis for AirBoss of America
Additionally, the consensus price target for AirBoss of America increased 61% to US$36.68, showing a clear increase in optimism from the analysts involved. 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. Currently, the most bullish analyst values AirBoss of America at US$50.89 per share, while the most bearish prices it at US$41.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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 AirBoss of America's rate of growth is expected to accelerate meaningfully, with the forecast 36% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 8.8% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AirBoss of America to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for AirBoss of America this year. Analysts also expect revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at AirBoss of America.
Of course, there's always more to the story. We have analyst estimates for AirBoss of America going out to 2023, and you can see them 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.
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