Earnings Update: Here's Why Analysts Just Lifted Their AdTheorent Holding Company, Inc. (NASDAQ:ADTH) Price Target To US$4.90

It's been a good week for AdTheorent Holding Company, Inc. (NASDAQ:ADTH) shareholders, because the company has just released its latest annual results, and the shares gained 8.9% to US$3.29. Revenues of US$171m beat analyst forecasts by2.1%, while the business broke even in terms of statutory earnings per share (EPS). Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for AdTheorent Holding Company

After the latest results, the five analysts covering AdTheorent Holding Company are now predicting revenues of US$191.0m in 2024. If met, this would reflect a notable 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 77,822% to US$0.06. Before this earnings report, the analysts had been forecasting revenues of US$182.6m and earnings per share (EPS) of US$0.048 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a considerable lift to earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for AdTheorent Holding Company 17% to US$4.90on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values AdTheorent Holding Company at US$7.00 per share, while the most bearish prices it at US$3.75. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting AdTheorent Holding Company's growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.5% per annum 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 3.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AdTheorent Holding Company is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards AdTheorent Holding Company following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for AdTheorent Holding Company going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 4 warning signs we've spotted with AdTheorent Holding Company .

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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.