Analysts Just Published A Bright New Outlook For Intellicheck, Inc.'s (NASDAQ:IDN)

By
Simply Wall St
Published
August 05, 2021
NasdaqGM:IDN
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Intellicheck, Inc. (NASDAQ:IDN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from Intellicheck's four analysts is for revenues of US$17m in 2021, which would reflect a substantial 28% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.11 per share. However, before this estimates update, the consensus had been expecting revenues of US$15m and US$0.13 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

View our latest analysis for Intellicheck

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NasdaqGM:IDN Earnings and Revenue Growth August 6th 2021

Despite these upgrades, the analysts have not made any major changes to their price target of US$13.13, implying that their latest estimates don't have a long term impact on what they think the stock is worth. 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. There are some variant perceptions on Intellicheck, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$11.50 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Intellicheck's past performance and to peers in the same industry. It's clear from the latest estimates that Intellicheck's rate of growth is expected to accelerate meaningfully, with the forecast 63% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 27% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Intellicheck to grow faster than the wider industry.

The Bottom Line

The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around Intellicheck's prospects. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Intellicheck.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Intellicheck 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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