One Analyst's Revenue Estimates For Inner Spirit Holdings Ltd. (CSE:ISH) Are Surging Higher

Celebrations may be in order for Inner Spirit Holdings Ltd. (CSE:ISH) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline. Inner Spirit Holdings has also found favour with investors, with the stock up a worthy 15% to CA$0.15 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Inner Spirit Holdings' solo analyst is now forecasting revenues of CA$27m in 2020. This would be a sizeable 28% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of CA$22m in 2020. It looks like there's been a clear increase in optimism around Inner Spirit Holdings, given the very substantial lift in revenue forecasts.

Check out our latest analysis for Inner Spirit Holdings

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Inner Spirit Holdings' revenue growth will slow down substantially, with revenues next year expected to grow 28%, compared to a historical growth rate of 75% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 16% next year. So it's pretty clear that, while Inner Spirit Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Inner Spirit Holdings this year. The analyst also expects revenues to grow faster than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Inner Spirit Holdings.

The covering analyst is definitely bullish on Inner Spirit Holdings, 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 .

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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