This Just In: Analysts Are Boosting Their Audinate Group Limited (ASX:AD8) Outlook for This Year
Shareholders in Audinate Group Limited (ASX:AD8) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 25% to AU$12.46 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 latest consensus from Audinate Group's six analysts is for revenues of AU$89m in 2024, which would reflect a major 57% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting AU$0.048 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of AU$80m and earnings per share (EPS) of AU$0.028 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for Audinate Group
With these upgrades, we're not surprised to see that the analysts have lifted their price target 20% to AU$12.34 per share.
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. The analysts are definitely expecting Audinate Group's growth to accelerate, with the forecast 57% annualised growth to the end of 2024 ranking favourably alongside historical growth of 19% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 16% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Audinate Group to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Audinate Group.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Audinate Group analysts - going out to 2026, 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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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.
