Rainbows and Unicorns: HyreCar Inc. (NASDAQ:HYRE) Analysts Just Became A Lot More Optimistic

HyreCar Inc. (NASDAQ:HYRE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on HyreCar too, with the stock up 24% to US$9.84 over the past week. 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 HyreCar's four analysts is for revenues of US$44m in 2021 which - if met - would reflect a major 92% increase on its sales over the past 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 92% to US$0.073. Yet before this consensus update, the analysts had been forecasting revenues of US$39m and losses of US$0.13 per share in 2021. 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.

Check out our latest analysis for HyreCar

It will come as no surprise to learn that the analysts have increased their price target for HyreCar 66% to US$12.25 on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on HyreCar, with the most bullish analyst valuing it at US$8.00 and the most bearish at US$7.00 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that HyreCar's rate of growth is expected to accelerate meaningfully, with the forecast 92% revenue growth noticeably faster than its historical growth of 52% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.6% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HyreCar to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting HyreCar is moving incrementally towards profitability. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, HyreCar could be worth investigating further.

Analysts are definitely bullish on HyreCar, 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 3 other risks 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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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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