Aleafia Health Inc. ( TSE:AH ) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Aleafia Health will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 13% to CA$0.13 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the upgrade, the most recent consensus for Aleafia Health from its two analysts is for revenues of CA$91m in 2022 which, if met, would be a major 115% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$83m in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Aleafia Health's growth to accelerate, with the forecast 115% annualised growth to the end of 2022 ranking favourably alongside historical growth of 67% 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 15% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Aleafia Health is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Aleafia Health.
Analysts are definitely bullish on Aleafia Health, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 4 other risks we've identified .
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.