Need To Know: Analysts Are Much More Bullish On MACA Limited (ASX:MLD) Revenues
Shareholders in MACA Limited (ASX:MLD) 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 MACA will make substantially more sales than they'd previously expected.
Following the upgrade, the current consensus from MACA's twin analysts is for revenues of AU$1.1b in 2021 which - if met - would reflect a huge 33% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing AU$894m of revenue in 2021. It looks like there's been a clear increase in optimism around MACA, given the substantial gain in revenue forecasts.
View our latest analysis for MACA
The consensus price target rose 11% to AU$1.59, with the analysts clearly more optimistic about MACA's prospects following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic MACA analyst has a price target of AU$1.67 per share, while the most pessimistic values it at AU$1.44. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.
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 MACA's growth to accelerate, with the forecast 33% growth ranking favourably alongside historical growth of 8.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.6% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that MACA is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at MACA.
Unsatisfied? At least one of MACA's twin analysts has provided estimates out to 2023, which can be seen for free on our platform here.
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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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