Analysts Just Made A Sizeable Upgrade To Their GAN Limited (NASDAQ:GAN) Forecasts

Shareholders in GAN Limited (NASDAQ:GAN) 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. Investors have been pretty optimistic on GAN too, with the stock up 15% to US$26.88 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the four analysts covering GAN are now predicting revenues of US$99m in 2021. If met, this would reflect a substantial 167% 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 US$0.014 per share next year. Prior to this update, the analysts had been forecasting revenues of US$86m and earnings per share (EPS) of US$0.0036 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for GAN

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that GAN's rate of growth is expected to accelerate meaningfully, with the forecast 167% revenue growth noticeably faster than its historical growth of 31% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 25% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect GAN to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts 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. More bullish expectations could be a signal for investors to take a closer look at GAN.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for GAN going out to 2022, and you can see them 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. 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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