Need To Know: Analysts Are Much More Bullish On GAN Limited (NASDAQ:GAN)

Celebrations may be in order for GAN Limited (NASDAQ:GAN) shareholders, with the analysts 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 analysts modelling a real improvement in business performance.

After this upgrade, GAN's four analysts are now forecasting revenues of US$123m in 2021. This would be a substantial 122% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 64% to US$0.28. However, before this estimates update, the consensus had been expecting revenues of US$106m and US$0.45 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.

See our latest analysis for GAN

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 GAN's growth to accelerate, with the forecast 190% annualised growth to the end of 2021 ranking favourably alongside historical growth of 36% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 21% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that GAN 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 this year, reflecting increased optimism around GAN's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations, it might be time to take another look at GAN.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect GAN to be able to reach break-even within the next few years. You can learn more about these forecasts, 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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