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Analyst Forecasts For GAN Limited (NASDAQ:GAN) Are Surging Higher

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Simply Wall St
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Celebrations may be in order for GAN Limited (NASDAQ:GAN) 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. The market may be pricing in some blue sky too, with the share price gaining 15% to US$26.88 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 GAN's four analysts is for revenues of US$99m in 2021 which - if met - would reflect a sizeable 167% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting US$0.014 in per-share earnings. Previously, the analysts had been modelling revenues of US$86m and earnings per share (EPS) of US$0.0036 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.

See our latest analysis for GAN

earnings-and-revenue-growth
earnings-and-revenue-growth

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that GAN's rate of growth is expected to accelerate meaningfully, with the forecast 167% revenue growth noticeably faster than its historical growth of 31% p.a. 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 25% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect GAN 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 next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about GAN's future.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple GAN analysts - going out to 2022, 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.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.