Yahoo Finance Analysts Just Made An Incredible Upgrade To Their Argo Blockchain plc (LON:ARB) Forecasts
Celebrations may be in order for Argo Blockchain plc (LON:ARB) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
After this upgrade, Argo Blockchain's two analysts are now forecasting revenues of UK£79m in 2021. This would be a huge 104% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 332% to UK£0.10. Before this latest update, the analysts had been forecasting revenues of UK£58m and earnings per share (EPS) of UK£0.067 in 2021. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.
View our latest analysis for Argo Blockchain
Despite these upgrades, the analysts have not made any major changes to their price target of UK£2.45, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Argo Blockchain at UK£2.50 per share, while the most bearish prices it at UK£2.40. This is a very narrow spread of estimates, implying either that Argo Blockchain is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. The analysts are definitely expecting Argo Blockchain's growth to accelerate, with the forecast 3x annualised growth to the end of 2021 ranking favourably alongside historical growth of 132% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Argo Blockchain to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Argo Blockchain could be a good candidate for more research.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with Argo Blockchain, including concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 2 other flags 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.
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.
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