News Flash: Analysts Just Made A Meaningful Upgrade To Their Dusk Group Limited (ASX:DSK) Forecasts

Shareholders in Dusk Group Limited (ASX:DSK) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Dusk Group will make substantially more sales than they'd previously expected.

Following the upgrade, the latest consensus from Dusk Group's dual analysts is for revenues of AU$141m in 2021, which would reflect a sizeable 40% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing AU$123m of revenue in 2021. It looks like there's been a clear increase in optimism around Dusk Group, given the nice increase in revenue forecasts.

View our latest analysis for Dusk Group

The consensus price target rose 23% to AU$2.76, with the analysts clearly more optimistic about Dusk Group's prospects following this update. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Dusk Group analyst has a price target of AU$2.80 per share, while the most pessimistic values it at AU$2.72. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Dusk Group's rate of growth is expected to accelerate meaningfully, with the forecast 40% revenue growth noticeably faster than its historical growth of 17% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Dusk Group 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. 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Dusk Group.

Thirsting for more data? We have analyst estimates for Dusk Group 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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