US$3.75 - That's What Analysts Think PaySign, Inc. (NASDAQ:PAYS) Is Worth After These Results
It's been a pretty great week for PaySign, Inc. (NASDAQ:PAYS) shareholders, with its shares surging 20% to US$2.44 in the week since its latest quarterly results. PaySign's revenues suffered a miss, falling 2.6% short of forecasts, at US$8.6m. Statutory earnings per share (EPS) however performed much better, reaching break-even. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for PaySign
Taking into account the latest results, the current consensus from PaySign's four analysts is for revenues of US$37.6m in 2022, which would reflect a decent 13% increase on its sales over the past 12 months. Losses are predicted to fall substantially, shrinking 75% to US$0.0033. Before this earnings announcement, the analysts had been modelling revenues of US$37.0m and losses of US$0.015 per share in 2022. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a very promising decrease in losses per share in particular.
The average price target rose 8.7% to US$3.75, with the analysts signalling that the forecast reduction in losses would be a positive for the stock's valuation. 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 PaySign analyst has a price target of US$4.00 per share, while the most pessimistic values it at US$3.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong 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 PaySign's growth to accelerate, with the forecast 27% annualised growth to the end of 2022 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that PaySign is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for PaySign going out to 2023, and you can see them free on our platform here..
We also provide an overview of the PaySign Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.
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