Broker Revenue Forecasts For Exscientia plc (NASDAQ:EXAI) Are Surging Higher

Exscientia plc (NASDAQ:EXAI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Exscientia will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 7.8% over the past week, closing at US$7.98. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from Exscientia's four analysts is for revenues of UK£34m in 2023, which would reflect a huge 33% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of UK£29m in 2023. It looks like there's been a clear increase in optimism around Exscientia, given the nice increase in revenue forecasts.

View our latest analysis for Exscientia

There was no particular change to the consensus price target of UK£11.46, with Exscientia's latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Exscientia at UK£17.68 per share, while the most bearish prices it at UK£12.48. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Exscientia is forecast to grow faster in the future than it has in the past, with revenues expected to display 46% annualised growth until the end of 2023. If achieved, this would be a much better result than the 10% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 16% per year. Not only are Exscientia's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Exscientia.

Of course, there's always more to the story. We have analyst estimates for Exscientia going out to 2025, 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.