Currency Exchange International, Corp.'s (TSE:CXI) Sole Analyst Just Made A Sizeable Upgrade To Their Forecasts

Currency Exchange International, Corp. (TSE:CXI) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Currency Exchange International's solo analyst is for revenues of US$27m in 2021, which would reflect a sizeable 33% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 51% to US$0.64. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$21m and losses of US$1.20 per share in 2021. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Currency Exchange International

The consensus price target rose 23% to US$12.32, with the analyst encouraged by the higher revenue and lower forecast losses for this year.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Currency Exchange International's rate of growth is expected to accelerate meaningfully, with the forecast 78% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 1.7% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Currency Exchange International to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Currency Exchange International is moving incrementally towards profitability. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Currency Exchange International.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.

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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