Analysts Are Betting On MagForce AG (ETR:MF6) With A Big Upgrade This Week

MagForce AG (ETR:MF6) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, MagForce's four analysts are now forecasting revenues of €2.1m in 2020. This would be a major 102% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €1.2m in 2020. It looks like there's been a clear increase in optimism around MagForce, given the great increase in revenue forecasts.

See our latest analysis for MagForce

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that MagForce's rate of growth is expected to accelerate meaningfully, with revenues forecast to grow 102%, well above its historical decline of 50% a year over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 8.4% next year. So it looks like MagForce is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MagForce.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect MagForce to be able to reach break-even within the next few years. 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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