Yahoo Finance Analysts Just Made An Incredible Upgrade To Their Quipt Home Medical Corp. (CVE:QIPT) Forecasts
Quipt Home Medical Corp. (CVE:QIPT) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Quipt Home Medical too, with the stock up 19% to CA$7.51 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
After this upgrade, Quipt Home Medical's nine analysts are now forecasting revenues of US$222m in 2023. This would be a major 74% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 38% to US$0.19. Prior to this update, the analysts had been forecasting revenues of US$182m and earnings per share (EPS) of US$0.099 in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
Check out our latest analysis for Quipt Home Medical
With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to CA$13.78 per share. 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 Quipt Home Medical at CA$18.50 per share, while the most bearish prices it at CA$10.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Quipt Home Medical's past performance and to peers in the same industry. It's clear from the latest estimates that Quipt Home Medical's rate of growth is expected to accelerate meaningfully, with the forecast 74% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 18% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Quipt Home Medical to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Quipt Home Medical.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Quipt Home Medical going out to 2025, and you can see them 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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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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