News Flash: Analysts Just Made A Sizeable Upgrade To Their Flexion Mobile Plc (STO:FLEXM) Forecasts

Celebrations may be in order for Flexion Mobile Plc (STO:FLEXM) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Flexion Mobile's solo analyst is now forecasting revenues of UK£56m in 2022. This would be a huge 61% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to jump 323% to UK£0.06. Prior to this update, the analyst had been forecasting revenues of UK£47m and earnings per share (EPS) of UK£0.04 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Flexion Mobile

With these upgrades, we're not surprised to see that the analyst has lifted their price target 36% to UK£2.54 per share.

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 Flexion Mobile's rate of growth is expected to accelerate meaningfully, with the forecast 89% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 57% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 15% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Flexion Mobile to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Flexion Mobile could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Flexion Mobile going out as far as 2024, 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 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.