Analysts Just Published A Bright New Outlook For CoinShares International Limited's (STO:CS)

Shareholders in CoinShares International Limited (STO:CS) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After the upgrade, the three analysts covering CoinShares International are now predicting revenues of UK£113m in 2024. If met, this would reflect a huge 113% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of UK£1.38 per share this year. Before this latest update, the analysts had been forecasting revenues of UK£84m and earnings per share (EPS) of UK£0.76 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for CoinShares International

It will come as no surprise to learn that the analysts have increased their price target for CoinShares International 12% to UK£6.22 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values CoinShares International at UK£6.49 per share, while the most bearish prices it at UK£5.88. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CoinShares International's past performance and to peers in the same industry. For example, we noticed that CoinShares International's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 174% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.6% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. Not only are CoinShares International's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at CoinShares International.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple CoinShares International analysts - going out to 2026, and you can see them free on our platform here.

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.