News Flash: Analysts Just Made A Captivating Upgrade To Their Kraken Robotics Inc. (CVE:PNG) Forecasts

Kraken Robotics Inc. (CVE:PNG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current consensus from Kraken Robotics' two analysts is for revenues of CA$67m in 2023 which - if met - would reflect a major 42% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$56m in 2023. It looks like there's been a clear increase in optimism around Kraken Robotics, given the solid increase in revenue forecasts.

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The consensus price target rose 15% to CA$0.97, with the analysts clearly more optimistic about Kraken Robotics' prospects following this update. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Kraken Robotics, with the most bullish analyst valuing it at CA$1.05 and the most bearish at CA$0.90 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kraken Robotics' past performance and to peers in the same industry. We would highlight that Kraken Robotics' revenue growth is expected to slow, with the forecast 33% annualised growth rate until the end of 2023 being well below the historical 42% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.1% annually. Even after the forecast slowdown in growth, it seems obvious that Kraken Robotics 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 lifted their revenue estimates for next year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Kraken Robotics.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. For more information, you can click through to our free platform to learn more about these forecasts.

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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.