Celebrations may be in order for EKF Diagnostics Holdings plc (LON:EKF) shareholders, with the analysts 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. EKF Diagnostics Holdings has also found favour with investors, with the stock up a worthy 25% to UK£0.48 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the upgrade, the most recent consensus for EKF Diagnostics Holdings from its dual analysts is for revenues of UK£55m in 2020 which, if met, would be a major 23% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing UK£49m of revenue in 2020. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting EKF Diagnostics Holdings' growth to accelerate, with the forecast 23% growth ranking favourably alongside historical growth of 6.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect EKF Diagnostics Holdings to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for EKF Diagnostics Holdings this year. They're also forecasting more rapid revenue growth 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 EKF Diagnostics Holdings.
Unanswered questions? We have analyst estimates for EKF Diagnostics Holdings going out to 2021, 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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