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Growth Investors: Industry Analysts Just Upgraded Their NewAge, Inc. (NASDAQ:NBEV) Revenue Forecasts By 30%

Simply Wall St
·3 min read

Shareholders in NewAge, Inc. (NASDAQ:NBEV) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that NewAge will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from NewAge's three analysts is for revenues of US$407m in 2021 which - if met - would reflect a huge 64% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$312m of revenue in 2021. It looks like there's been a clear increase in optimism around NewAge, given the sizeable gain to revenue forecasts.

View our latest analysis for NewAge

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

Notably, the analysts have cut their price target 17% to US$5.00, suggesting concerns around NewAge's valuation.

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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 64%, in line with its 60% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.5% per year. So it's pretty clear that NewAge is forecast to grow substantially faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for NewAge next year. They're also forecasting more rapid revenue growth than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of NewAge's future valuation. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at NewAge.

Analysts are definitely bullish on NewAge, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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@simplywallst.com.