Upgrade: Analysts Just Made A Notable Increase To Their CyberOptics Corporation (NASDAQ:CYBE) Forecasts

CyberOptics Corporation (NASDAQ:CYBE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. CyberOptics has also found favour with investors, with the stock up a worthy 17% to US$47.13 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

After the upgrade, the three analysts covering CyberOptics are now predicting revenues of US$90m in 2021. If met, this would reflect a meaningful 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to climb 15% to US$1.24. Prior to this update, the analysts had been forecasting revenues of US$80m and earnings per share (EPS) of US$0.93 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for CyberOptics

It will come as no surprise to learn that the analysts have increased their price target for CyberOptics 7.9% to US$50.00 on the back of these upgrades. 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 CyberOptics at US$54.00 per share, while the most bearish prices it at US$46.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CyberOptics is an easy business to forecast or the underlying assumptions are obvious.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the CyberOptics' past performance and to peers in the same industry. The analysts are definitely expecting CyberOptics' growth to accelerate, with the forecast 26% annualised growth to the end of 2021 ranking favourably alongside historical growth of 4.3% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that CyberOptics is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. 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 and a rising price target, it might be time to take another look at CyberOptics.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple CyberOptics analysts - going out to 2022, and you can see them 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. 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.
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