Forecast: Analysts Think Kopin Corporation's (NASDAQ:KOPN) Business Prospects Have Improved Drastically

By
Simply Wall St
Published
March 03, 2021
NasdaqCM:KOPN
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Kopin Corporation (NASDAQ:KOPN) 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 analysts modelling a real improvement in business performance.

After the upgrade, the dual analysts covering Kopin are now predicting revenues of US$50m in 2021. If met, this would reflect a major 24% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.08 per share. However, before this estimates update, the consensus had been expecting revenues of US$39m and US$0.095 per share in losses. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.

See our latest analysis for Kopin

earnings-and-revenue-growth
NasdaqCM:KOPN Earnings and Revenue Growth March 4th 2021

The consensus price target rose 167% to US$12.00, with the analysts encouraged by the higher revenue and lower forecast losses for this year. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Kopin, with the most bullish analyst valuing it at US$5.50 and the most bearish at US$3.50 per share. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kopin's past performance and to peers in the same industry. The analysts are definitely expecting Kopin's growth to accelerate, with the forecast 24% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.9% 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 8.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kopin is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Kopin is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Kopin.

Better yet, Kopin is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, 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. 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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Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.