Need To Know: Analysts Are Much More Bullish On Cliq Digital AG (ETR:CLIQ) Revenues

Shareholders in Cliq Digital AG (ETR:CLIQ) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on Cliq Digital too, with the stock up 20% to €25.30 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the most recent consensus for Cliq Digital from its six analysts is for revenues of €203m in 2022 which, if met, would be a huge 52% increase on its sales over the past 12 months. Per-share earnings are expected to surge 55% to €3.35. Prior to this update, the analysts had been forecasting revenues of €175m and earnings per share (EPS) of €3.17 in 2022. Sentiment certainly seems to have improved in recent times, with a solid increase in revenue and a slight bump in earnings per share estimates.

Check out our latest analysis for Cliq Digital

With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.0% to €66.64 per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Cliq Digital, with the most bullish analyst valuing it at €75.00 and the most bearish at €62.00 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

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 clear from the latest estimates that Cliq Digital's rate of growth is expected to accelerate meaningfully, with the forecast 40% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cliq Digital 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better 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 Cliq Digital.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Cliq Digital analysts - 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.