Analysts Just Shipped A Sizeable Upgrade To Their Bragg Gaming Group Inc. (TSE:BRAG) Estimates

Bragg Gaming Group Inc. (TSE:BRAG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Bragg Gaming Group's four analysts is for revenues of €70m in 2022, which would reflect a substantial 24% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting €0.10 in per-share earnings. However, before this estimates update, the consensus had been expecting revenues of €59m and €0.27 per share in losses. It looks like there's been a definite improvement in business conditions, with a revenue upgrade supposed to lead to profitability sooner than previously forecast.

Check out our latest analysis for Bragg Gaming Group

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 pretty clear that there is an expectation that Bragg Gaming Group's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 56% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 18% annually. So it's pretty clear that, while Bragg Gaming Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away from this upgrade is that the consensus now expects Bragg Gaming Group to become profitable next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Bragg Gaming Group will grow in line with the overall market. More bullish expectations could be a signal for investors to take a closer look at Bragg Gaming Group.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Bragg Gaming Group analysts - going out to 2023, 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.