Analysts Are Betting On Quarterhill Inc. (TSE:QTRH) With A Big Upgrade This Week

Shareholders in Quarterhill Inc. (TSE:QTRH) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Quarterhill will make substantially more sales than they'd previously expected. Quarterhill shares have been sold down a little recently, so investors may be hoping the latest upgrade changes the market's appetite for the business. Over the past week the stock price has fallen 5.3% to CA$2.14.

Following the upgrade, the most recent consensus for Quarterhill from its five analysts is for revenues of CA$361m in 2022 which, if met, would be a sizeable 187% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$319m in 2022. It looks like there's been a clear increase in optimism around Quarterhill, given the substantial gain in revenue forecasts.

Check out our latest analysis for Quarterhill

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quarterhill's past performance and to peers in the same industry. For example, we noticed that Quarterhill's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3x growth to the end of 2022 on an annualised basis. That is well above its historical decline of 0.1% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 16% per year. Not only are Quarterhill's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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 Quarterhill.

Better yet, Quarterhill is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. For more information, you can click through to our free platform to learn more about these forecasts.

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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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.