Growth Investors: Industry Analysts Just Upgraded Their SigmaRoc plc (LON:SRC) Revenue Forecasts By 12%

Celebrations may be in order for SigmaRoc plc (LON:SRC) 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. The stock price has risen 9.8% to UK£0.56 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After the upgrade, the dual analysts covering SigmaRoc are now predicting revenues of UK£112m in 2020. If met, this would reflect a decent 18% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£100m in 2020. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.

See our latest analysis for SigmaRoc

There was no particular change to the consensus price target of UK£0.71, with SigmaRoc's latest outlook seemingly not enough to result in a change of valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic SigmaRoc analyst has a price target of UK£0.78 per share, while the most pessimistic values it at UK£0.60. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that SigmaRoc's revenue growth is expected to slow, with forecast 18% increase next year well below the historical 59% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.0% next year. So it's pretty clear that, while SigmaRoc's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at SigmaRoc.

Hungry for more information? We have analyst estimates for SigmaRoc going out to 2022, and you can see them free on our platform here.

You can also see our analysis of SigmaRoc's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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