Industry Analysts Just Upgraded Their Sivers Semiconductors AB (publ) (STO:SIVE) Revenue Forecasts By 29%

Celebrations may be in order for Sivers Semiconductors AB (publ) (STO:SIVE) 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. Investors have been pretty optimistic on Sivers Semiconductors too, with the stock up 21% to kr8.00 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Sivers Semiconductors' three analysts is for revenues of kr492m in 2023 which - if met - would reflect a substantial 156% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 26% to kr0.30. However, before this estimates update, the consensus had been expecting revenues of kr381m and kr0.32 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Sivers Semiconductors

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 Sivers Semiconductors' growth to accelerate, with the forecast 112% annualised growth to the end of 2023 ranking favourably alongside historical growth of 10% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Sivers Semiconductors is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Sivers Semiconductors' prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Sivers Semiconductors.

Analysts are definitely bullish on Sivers Semiconductors, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other concerns we've identified .

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.