Broker Revenue Forecasts For AAC Clyde Space AB (publ) (STO:AAC) Are Surging Higher

AAC Clyde Space AB (publ) (STO:AAC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that AAC Clyde Space will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from AAC Clyde Space's two analysts is for revenues of kr212m in 2021 which - if met - would reflect a substantial 76% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of kr185m in 2021. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

View our latest analysis for AAC Clyde Space

The consensus price target fell 7.6% to kr3.65, with the analysts clearly less optimistic about AAC Clyde Space's valuation following this update.

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. The analysts are definitely expecting AAC Clyde Space's growth to accelerate, with the forecast 76% annualised growth to the end of 2021 ranking favourably alongside historical growth of 30% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AAC Clyde Space to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for AAC Clyde Space this year. Analysts also expect revenues to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of AAC Clyde Space's future valuation. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at AAC Clyde Space.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential warning signs with AAC Clyde Space, including a short cash runway. You can learn more, and discover the 3 other warning signs we've identified, for free on our platform here.

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