Celebrations may be in order for u-blox Holding AG (VTX:UBXN) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. u-blox Holding has also found favour with investors, with the stock up a noteworthy 13% to CHF88.15 over the past week. Could this upgrade be enough to drive the stock even higher?
After the upgrade, the six analysts covering u-blox Holding are now predicting revenues of CHF486m in 2022. If met, this would reflect a meaningful 17% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CHF441m in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that u-blox Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.1% 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 11% per year. Not only are u-blox Holding'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. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about u-blox Holding's future.
Unanswered questions? We have analyst estimates for u-blox Holding going out to 2024, and you can see them free on our platform here.
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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