Copperleaf Technologies Inc. (TSE:CPLF) Just Reported And Analysts Have Been Lifting Their Price Targets

Investors in Copperleaf Technologies Inc. (TSE:CPLF) had a good week, as its shares rose 5.9% to close at CA$6.67 following the release of its yearly results. It was a respectable set of results; while revenues of CA$80m were in line with analyst predictions, statutory losses were 10% smaller than expected, with Copperleaf Technologies losing CA$0.49 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Copperleaf Technologies

Taking into account the latest results, the most recent consensus for Copperleaf Technologies from seven analysts is for revenues of CA$98.8m in 2024. If met, it would imply a major 24% increase on its revenue over the past 12 months. Losses are expected to be contained, narrowing 18% from last year to CA$0.39. Before this latest report, the consensus had been expecting revenues of CA$97.7m and CA$0.37 per share in losses. So it's pretty clear consensus is mixed on Copperleaf Technologies after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a moderate increase in per-share loss expectations.

Although the analysts are now forecasting higher losses, the average price target rose 11% to 6.625, which could indicate that these losses are expected to be "one-off", or are not anticipated to have a longer-term impact on the business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Copperleaf Technologies at CA$9.00 per share, while the most bearish prices it at CA$5.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Copperleaf Technologies' growth to accelerate, with the forecast 24% annualised growth to the end of 2024 ranking favourably alongside historical growth of 17% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Copperleaf Technologies to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Copperleaf Technologies. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Copperleaf Technologies going out to 2025, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Copperleaf Technologies , and understanding them should be part of your investment process.

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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.