The Remark Holdings, Inc. (NASDAQ:MARK) Analyst Just Boosted Their Forecasts By A Substantial Amount

Shareholders in Remark Holdings, Inc. (NASDAQ:MARK) may be thrilled to learn that the covering analyst has 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. The market seems to be pricing in some improvement in the business too, with the stock up 7.7% over the past week, closing at US$2.39. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, Remark Holdings' single analyst is now forecasting revenues of US$34m in 2021. This would be a huge 231% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 31% to US$0.11. However, before this estimates update, the consensus had been expecting revenues of US$28m and US$0.15 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst 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 Remark Holdings

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Remark Holdings' past performance and to peers in the same industry. For example, we noticed that Remark Holdings' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 231% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 34% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 17% annually. So it looks like Remark Holdings is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Remark Holdings is moving incrementally towards profitability. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. More bullish expectations could be a signal for investors to take a closer look at Remark Holdings.

The covering analyst is definitely bullish on Remark Holdings, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .

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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