Growth Investors: Industry Analysts Just Upgraded Their Peoplein Limited (ASX:PPE) Revenue Forecasts By 10%

Celebrations may be in order for Peoplein Limited (ASX:PPE) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After this upgrade, Peoplein's three analysts are now forecasting revenues of AU$677m in 2022. This would be a substantial 21% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$614m in 2022. It looks like there's been a clear increase in optimism around Peoplein, given the solid increase in revenue forecasts.

See our latest analysis for Peoplein

There was no particular change to the consensus price target of AU$4.95, with Peoplein's latest outlook seemingly not enough to result in a change of valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Peoplein at AU$5.15 per share, while the most bearish prices it at AU$4.60. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Peoplein's past performance and to peers in the same industry. It's clear from the latest estimates that Peoplein's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 24% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Peoplein to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Peoplein.

Looking to learn more? We have analyst estimates for Peoplein going out to 2024, 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.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.