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Party Time: Brokers Just Made Major Increases To Their LeMaitre Vascular, Inc. (NASDAQ:LMAT) Earnings Forecasts

Simply Wall St
·3 min read

Shareholders in LeMaitre Vascular, Inc. (NASDAQ:LMAT) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.

After this upgrade, LeMaitre Vascular's five analysts are now forecasting revenues of US$121m in 2020. This would be a reasonable 5.4% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to decline 12% to US$0.73 in the same period. Before this latest update, the analysts had been forecasting revenues of US$105m and earnings per share (EPS) of US$0.53 in 2020. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for LeMaitre Vascular

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earnings-and-revenue-growth

It will come as no surprise to learn that the analysts have increased their price target for LeMaitre Vascular 11% to US$34.43 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values LeMaitre Vascular at US$41.00 per share, while the most bearish prices it at US$28.00. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LeMaitre Vascular's past performance and to peers in the same industry. We would highlight that LeMaitre Vascular's revenue growth is expected to slow, with forecast 5.4% increase next year well below the historical 9.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than LeMaitre Vascular.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, LeMaitre Vascular could be worth investigating further.

Better yet, our automated discounted cash flow calculation (DCF) suggests LeMaitre Vascular could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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.