Need To Know: Analysts Are Much More Bullish On Voyager Digital Ltd. (TSE:VOYG) Revenues

Voyager Digital Ltd. (TSE:VOYG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 7.0% to CA$19.99 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the most recent consensus for Voyager Digital from its seven analysts is for revenues of US$531m in 2022 which, if met, would be a major 108% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$425m of revenue in 2022. It looks like there's been a clear increase in optimism around Voyager Digital, given the chunky increase in revenue forecasts.

View our latest analysis for Voyager Digital

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. We would highlight that Voyager Digital's revenue growth is expected to slow, with the forecast 166% annualised growth rate until the end of 2022 being well below the historical 8,168% growth over the last year. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 30% annually. So it's clear that despite the slowdown in growth, Voyager Digital is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Voyager Digital this year. Analysts also expect revenues to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Voyager Digital.

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. You can learn more about these forecasts, for free on our platform here.

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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.

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