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Celebrations may be in order for accesso Technology Group plc ( LON:ACSO ) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. The market seems to be pricing in some improvement in the business too, with the stock up 5.1% over the past week, closing at UK£6.20. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
After the upgrade, the three analysts covering accesso Technology Group are now predicting revenues of US$102m in 2021. If met, this would reflect a sizeable 69% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 76% to US$0.20. Yet before this consensus update, the analysts had been forecasting revenues of US$86m and losses of US$0.26 per share in 2021. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Check out our latest analysis for accesso Technology Group
It will come as no surprise to learn that the analysts have increased their price target for accesso Technology Group 5.6% to UK£7.66 on the back of these upgrades. 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. There are some variant perceptions on accesso Technology Group, with the most bullish analyst valuing it at UK£8.00 and the most bearish at UK£6.99 per share. This is a very narrow spread of estimates, implying either that accesso Technology Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that accesso Technology Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 69% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 2.5% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are accesso Technology Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.