Broker Revenue Forecasts For Precipio, Inc. (NASDAQ:PRPO) Are Surging Higher
Celebrations may be in order for Precipio, Inc. (NASDAQ:PRPO) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
After the upgrade, the solo analyst covering Precipio is now predicting revenues of US$15m in 2023. If met, this would reflect a substantial 39% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 16% per share from last year to US$0.33 per share. Yet prior to the latest estimates, the analyst had been forecasting revenues of US$14m and losses of US$0.34 per share in 2023. We can see there's definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Precipio
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Precipio's rate of growth is expected to accelerate meaningfully, with the forecast 92% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 30% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Precipio to grow faster than the wider industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Precipio is moving incrementally towards profitability. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Precipio.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential risks with Precipio, including a short cash runway. For more information, you can click through to our platform to learn more about this and the 4 other risks 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
