MoneyLion Inc. (NYSE:ML) Just Reported And Analysts Have Been Lifting Their Price Targets
Shareholders will be ecstatic, with their stake up 44% over the past week following MoneyLion Inc.'s (NYSE:ML) latest yearly results. Revenue hit US$423m in line with forecasts, although the company reported a statutory loss per share of US$4.63 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for MoneyLion
Taking into account the latest results, the current consensus from MoneyLion's four analysts is for revenues of US$521.3m in 2024. This would reflect a huge 23% increase on its revenue over the past 12 months. Earnings are expected to improve, with MoneyLion forecast to report a statutory profit of US$0.96 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$512.8m and losses of US$0.34 per share in 2024. Although we saw no serious change to the revenue outlook, the analysts have definitely increased their earnings estimates, estimating a profit next year, compared to previous forecasts of a loss. So it seems like the consensus has become substantially more bullish on MoneyLion.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 19% to US$89.25. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values MoneyLion at US$102 per share, while the most bearish prices it at US$75.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the MoneyLion's past performance and to peers in the same industry. We would highlight that MoneyLion's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2024 being well below the historical 50% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. Even after the forecast slowdown in growth, it seems obvious that MoneyLion is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts now expect MoneyLion to become profitable next year, compared to previous expectations that it would report a loss. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for MoneyLion going out to 2025, and you can see them free on our platform here.
You still need to take note of risks, for example - MoneyLion has 2 warning signs we think you should be aware of.
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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.
