This Just In: Analysts Are Boosting Their Quisitive Technology Solutions, Inc. (CVE:QUIS) Outlook for Next Year

Shareholders in Quisitive Technology Solutions, Inc. (CVE:QUIS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 7.9% to CA$1.63 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Quisitive Technology Solutions' six analysts are now forecasting revenues of US$84m in 2021. This would be a sizeable 99% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.03 per share next year. Before this latest update, the analysts had been forecasting revenues of US$69m and earnings per share (EPS) of US$0.01 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Quisitive Technology Solutions

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$2.20, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Quisitive Technology Solutions at CA$2.50 per share, while the most bearish prices it at CA$1.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's pretty clear that there is an expectation that Quisitive Technology Solutions' revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 73% growth on an annualised basis. This is compared to a historical growth rate of 132% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 19% annually. Even after the forecast slowdown in growth, it seems obvious that Quisitive Technology Solutions is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Quisitive Technology Solutions could be a good candidate for more research.

Analysts are definitely bullish on Quisitive Technology Solutions, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other warning sign 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. 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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