This Analyst Just Made A Meaningful Upgrade To Their iSun, Inc. (NASDAQ:ISUN) Earnings Forecasts

Celebrations may be in order for iSun, Inc. (NASDAQ:ISUN) 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.

Following the upgrade, the current consensus from iSun's lone analyst is for revenues of US$165m in 2022 which - if met - would reflect a substantial 498% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analyst forecasting US$0.93 in per-share earnings. Previously, the analyst had been modelling revenues of US$139m and earnings per share (EPS) of US$0.73 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.

Check out our latest analysis for iSun

It will come as no surprise to learn that the analyst has increased their price target for iSun 18% to US$33.00 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the iSun's past performance and to peers in the same industry. It's clear from the latest estimates that iSun's rate of growth is expected to accelerate meaningfully, with the forecast 3x annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 14% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that iSun 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 next year, expecting improving business conditions. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at iSun.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with iSun, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other warning signs we've identified, 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.

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.

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