Shareholders in PointsBet Holdings Limited (ASX:PBH) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After this upgrade, PointsBet Holdings’ four analysts are now forecasting revenues of AU$158m in 2021. This would be a huge 110% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$120m in 2021. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
Check out our latest analysis for PointsBet Holdings
Additionally, the consensus price target for PointsBet Holdings increased 108% to AU$13.05, 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. The most optimistic PointsBet Holdings analyst has a price target of AU$18.40 per share, while the most pessimistic values it at AU$9.70. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PointsBet Holdings’ past performance and to peers in the same industry. The analysts are definitely expecting PointsBet Holdings’ growth to accelerate, with the forecast 110% growth ranking favourably alongside historical growth of 79% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it’s pretty clear that PointsBet Holdings is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for PointsBet Holdings this year. The 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 PointsBet Holdings.
Looking to learn more? We have analyst estimates for PointsBet Holdings going out to 2023, 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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