Stock Analysis

Broker Revenue Forecasts For IQGeo Group plc (LON:IQG) Are Surging Higher

AIM:IQG
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IQGeo Group plc (LON:IQG) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's statutory forecasts. The analyst has sharply increased their revenue numbers, with a view that IQGeo Group will make substantially more sales than they'd previously expected. The stock price has risen 4.3% to UK£1.33 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 this upgrade, IQGeo Group's single analyst is now forecasting revenues of UK£21m in 2022. This would be a major 52% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of UK£17m in 2022. It looks like there's been a clear increase in optimism around IQGeo Group, given the considerable lift to revenue forecasts.

View our latest analysis for IQGeo Group

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AIM:IQG Earnings and Revenue Growth August 14th 2022

We'd point out that there was no major changes to their price target of UK£1.65, suggesting the latest estimates were not enough to shift their view on the value of the business.

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. For example, we noticed that IQGeo Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 52% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 22% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. Not only are IQGeo Group's revenues expected to improve, it seems that the analyst is also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at IQGeo Group.

It's great to see this broker upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

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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.

About AIM:IQG

IQGeo Group

IQGeo Group plc, together with its subsidiaries, delivers geospatial software solutions for the telecoms and utility network operators in the United Kingdom, the United States, Canada, Belgium, Germany, Japan, Malaysia, and internationally.

Flawless balance sheet with high growth potential.