Growth Investors: Industry Analysts Just Upgraded Their MACA Limited (ASX:MLD) Revenue Forecasts By 18%

MACA Limited (ASX:MLD) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that MACA will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for MACA from its dual analysts is for revenues of AU$1.1b in 2021 which, if met, would be a sizeable 33% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$894m in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for MACA

Additionally, the consensus price target for MACA increased 11% to AU$1.59, 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 MACA analyst has a price target of AU$1.67 per share, while the most pessimistic values it at AU$1.44. 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 MACA's rate of growth is expected to accelerate meaningfully, with the forecast 33% revenue growth noticeably faster than its historical growth of 8.9% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.6% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MACA 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. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MACA.

Looking to learn more? At least one of MACA's dual analysts has provided estimates out to 2023, which can be seen 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.

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