Industry Analysts Just Upgraded Their Medley, Inc. (TSE:4480) Revenue Forecasts By 10%

Shareholders in Medley, Inc. (TSE:4480) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term 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 current consensus from Medley's five analysts is for revenues of JP¥29b in 2024 which - if met - would reflect a huge 39% increase on its sales over the past 12 months. Statutory earnings per share are presumed to accumulate 4.9% to JP¥83.23. Previously, the analysts had been modelling revenues of JP¥26b and earnings per share (EPS) of JP¥81.86 in 2024. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.

See our latest analysis for Medley

It may not be a surprise to see that the analysts have reconfirmed their price target of JP¥5,865, implying that the uplift in sales is not expected to greatly contribute to Medley's valuation in the near term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 39% growth on an annualised basis. That is in line with its 34% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 13% per year. So it's pretty clear that Medley is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Medley.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Medley analysts - going out to 2026, 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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