Growth Investors: Industry Analysts Just Upgraded Their Atlantic Sapphire ASA (OB:ASA) Revenue Forecasts By 31%

Celebrations may be in order for Atlantic Sapphire ASA (OB:ASA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the most recent consensus for Atlantic Sapphire from its three analysts is for revenues of US$77m in 2024 which, if met, would be a major 447% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$59m in 2024. It looks like there's been a clear increase in optimism around Atlantic Sapphire, given the sizeable gain to revenue forecasts.

View our latest analysis for Atlantic Sapphire

Additionally, the consensus price target for Atlantic Sapphire increased 56% to US$5.11, showing a clear increase in optimism from the analysts involved.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Atlantic Sapphire's rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 34% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Atlantic Sapphire is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Atlantic Sapphire this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Atlantic Sapphire.

Analysts are clearly in love with Atlantic Sapphire at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.