News Flash: Analysts Just Made A Substantial Upgrade To Their Neighbourly Pharmacy Inc. (TSE:NBLY) Forecasts

Neighbourly Pharmacy Inc. (TSE:NBLY) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Neighbourly Pharmacy's seven analysts are now forecasting revenues of CA$659m in 2023. This would be a substantial 65% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CA$580m of revenue in 2023. It looks like there's been a clear increase in optimism around Neighbourly Pharmacy, given the solid increase in revenue forecasts.

Check out our latest analysis for Neighbourly Pharmacy

There was no particular change to the consensus price target of CA$35.64, with Neighbourly Pharmacy's latest outlook seemingly not enough to result in a change of valuation. 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. Currently, the most bullish analyst values Neighbourly Pharmacy at CA$42.00 per share, while the most bearish prices it at CA$31.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Neighbourly Pharmacy shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Neighbourly Pharmacy's past performance and to peers in the same industry. The analysts are definitely expecting Neighbourly Pharmacy's growth to accelerate, with the forecast 50% annualised growth to the end of 2023 ranking favourably alongside historical growth of 33% 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 2.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Neighbourly Pharmacy to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Neighbourly Pharmacy next year. They're also forecasting more rapid revenue growth 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 Neighbourly Pharmacy.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.

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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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.