Analysts Are Betting On WANdisco plc (LON:WAND) With A Big Upgrade This Week

Shareholders in WANdisco plc (LON:WAND) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that WANdisco will make substantially more sales than they'd previously expected.

After the upgrade, the consensus from WANdisco's three analysts is for revenues of US$6.7m in 2021, which would reflect a substantial 35% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing US$6.1m of revenue in 2021. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

See our latest analysis for WANdisco

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that WANdisco's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 35% to the end of 2021. This tops off a historical decline of 2.3% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So while a broad number of companies are forecast to grow, unfortunately WANdisco is expected to see its sales affected worse than other companies in the industry.

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 anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at WANdisco.

Thirsting for more data? We have analyst estimates for WANdisco going out to 2023, 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.