Celebrations may be in order for CleanSpark, Inc. (NASDAQ:CLSK) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analyst now much more optimistic on its sales pipeline.
Following the upgrade, the latest consensus from CleanSpark's lone analyst is for revenues of US$49m in 2021, which would reflect a substantial 337% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analyst was forecasting revenues of US$28m in 2021. The consensus has definitely become more optimistic, showing a chunky increase in revenue forecasts.
The consensus price target rose 108% to US$50.00, with the analyst clearly more optimistic about CleanSpark's prospects following this update.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that CleanSpark's rate of growth is expected to accelerate meaningfully, with the forecast 3x revenue growth noticeably faster than its historical growth of 96% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that CleanSpark is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that the analyst increased their revenue forecasts for CleanSpark this year. The analyst also expects revenues to grow faster than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that the analyst appears to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at CleanSpark.
The covering analyst is definitely bullish on CleanSpark, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .
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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