Growth Investors: Industry Analysts Just Upgraded Their Quixant Plc (LON:QXT) Revenue Forecasts By 10%

Quixant Plc (LON:QXT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Quixant will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 6.0% over the past week, closing at UK£1.78. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Quixant's dual analysts is for revenues of US$87m in 2021, which would reflect a huge 20% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$79m in 2021. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

View our latest analysis for Quixant

There was no particular change to the consensus price target of US$3.35, with Quixant's latest outlook seemingly not enough to result in a change of 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. There are some variant perceptions on Quixant, with the most bullish analyst valuing it at US$2.50 and the most bearish at US$2.25 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Quixant is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2021. If achieved, this would be a much better result than the 4.7% annual decline 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 12% per year. Not only are Quixant'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 highlight for us was that analysts increased their revenue forecasts for Quixant 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 Quixant.

Thirsting for more data? We have analyst estimates for Quixant going out to 2022, 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.