News Flash: Analysts Just Made A Substantial 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. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance.

Following the upgrade, the current consensus from Flexion Mobile's solitary analyst is for revenues of UK£64m in 2022 which - if met - would reflect a major 65% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 235% to UK£0.08. Before this latest update, the analyst had been forecasting revenues of UK£56m and earnings per share (EPS) of UK£0.06 in 2022. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Flexion Mobile

With these upgrades, we're not surprised to see that the analyst has lifted their price target 9.3% to UK£2.77 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Flexion Mobile's rate of growth is expected to accelerate meaningfully, with the forecast 95% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 56% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Flexion Mobile is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, the analyst 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 Flexion Mobile.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2024, which can be seen for 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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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.