New Forecasts: Here's What Analysts Think The Future Holds For Exscientia plc (NASDAQ:EXAI)

Celebrations may be in order for Exscientia plc (NASDAQ:EXAI) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the four analysts covering Exscientia are now predicting revenues of UK£32m in 2023. If met, this would reflect a substantial 45% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing UK£26m of revenue in 2023. It looks like there's been a clear increase in optimism around Exscientia, given the sizeable gain to revenue forecasts.

View our latest analysis for Exscientia

We'd point out that there was no major changes to their price target of UK£11.50, suggesting the latest estimates were not enough to shift their view on the value of the business. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Exscientia at UK£13.35 per share, while the most bearish prices it at UK£9.43. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Exscientia's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 111% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 39% a year 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 15% per year. So it looks like Exscientia is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth 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.

Thirsting for more data? At least one of Exscientia's four analysts has provided estimates out to 2025, which can be seen for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.