Yahoo Finance News Flash: Analysts Just Made A Notable Upgrade To Their Marley Spoon AG (ASX:MMM) Forecasts
Marley Spoon AG (ASX:MMM) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
After this upgrade, Marley Spoon's single analyst is now forecasting revenues of €203m in 2020. This would be a major 56% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 96% to €0.009. Yet prior to the latest estimates, the analyst had been forecasting revenues of €175m and losses of €0.059 per share in 2020. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Marley Spoon
It will come as no surprise to learn that the analyst has increased their price target for Marley Spoon 119% to €1.20 on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting Marley Spoon'sgrowth to accelerate, with the forecast 56% growth ranking favourably alongside historical growth of 44% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that Marley Spoon is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that the analyst reduced their loss per share estimates for this year, reflecting increased optimism around Marley Spoon'sprospects. Fortunately, the analyst 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, Marley Spoon could be worth investigating further.
It's great to see this 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.
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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