News Flash: One Analyst Just Made A Dazzling Upgrade To Their Tingo Group, Inc. (NASDAQ:TIO) Forecasts

Celebrations may be in order for Tingo Group, Inc. (NASDAQ:TIO) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst has sharply increased their revenue numbers, with a view that Tingo Group will make substantially more sales than they'd previously expected. The market may be pricing in some blue sky too, with the share price gaining 24% to US$4.78 in the last 7 days. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the current consensus from Tingo Group's solitary analyst is for revenues of US$4.6b in 2023 which - if met - would reflect a huge 369% increase on its sales over the past 12 months. Per-share earnings are expected to surge 117% to US$1.83. Prior to this update, the analyst had been forecasting revenues of US$3.0b and earnings per share (EPS) of US$1.76 in 2023. The forecasts seem more optimistic now, with a considerable lift to revenue and a modest lift to earnings per share estimates.

See our latest analysis for Tingo Group

It will come as no surprise to learn that the analyst has increased their price target for Tingo Group 88% to US$11.75 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Tingo Group's growth to accelerate, with the forecast 7x annualised growth to the end of 2023 ranking favourably alongside historical growth of 87% 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 5.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Tingo Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Tingo Group.

The covering analyst is definitely bullish on Tingo Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.