New Forecasts: Here's What Analysts Think The Future Holds For Cliq Digital AG (ETR:CLIQ)

Cliq Digital AG (ETR:CLIQ) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Cliq Digital's six analysts is for revenues of €253m in 2022, which would reflect a substantial 46% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 14% to €3.58. Before this latest update, the analysts had been forecasting revenues of €212m and earnings per share (EPS) of €3.43 in 2022. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a modest lift to earnings per share estimates.

See our latest analysis for Cliq Digital

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of €69.96, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic Cliq Digital analyst has a price target of €75.00 per share, while the most pessimistic values it at €64.80. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Cliq Digital's growth to accelerate, with the forecast 66% annualised growth to the end of 2022 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.6% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Cliq Digital is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected 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 Cliq Digital.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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.

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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.