New Forecasts: Here's What Analysts Think The Future Holds For MicroStrategy Incorporated (NASDAQ:MSTR)

MicroStrategy Incorporated (NASDAQ:MSTR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 4.7% to US$681 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following this upgrade, MicroStrategy's three analysts are forecasting 2021 revenues to be US$490m, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$437m in 2021. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

See our latest analysis for MicroStrategy

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2021. Historically, MicroStrategy's sales have shrunk approximately 2.0% annually 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 13% annually. So it's pretty clear that, although revenues are improving, MicroStrategy is still expected to grow slower than the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for MicroStrategy this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MicroStrategy.

Analysts are definitely bullish on MicroStrategy, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other warning signs we've identified, for free on our platform here.

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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