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Celebrations may be in order for EDAP TMS S.A. (NASDAQ:EDAP) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that EDAP TMS 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 20% to US$8.03 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the upgrade, the most recent consensus for EDAP TMS from its twin analysts is for revenues of €51m in 2021 which, if met, would be a major 33% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of €46m in 2021. It looks like there's been a clear increase in optimism around EDAP TMS, given the decent improvement in revenue forecasts.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EDAP TMS' past performance and to peers in the same industry. It's clear from the latest estimates that EDAP TMS' rate of growth is expected to accelerate meaningfully, with the forecast 33% revenue growth noticeably faster than its historical growth of 6.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.8% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EDAP TMS to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for EDAP TMS next year. Analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at EDAP TMS.
Unanswered questions? At least one of EDAP TMS' twin analysts has provided estimates out to 2025, which can be seen for 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.
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