Catapult Group International Ltd (ASX:CAT) Released Earnings Last Week And Analysts Lifted Their Price Target To AU$3.25

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It's been a pretty great week for Catapult Group International Ltd (ASX:CAT) shareholders, with its shares surging 12% to AU$3.00 in the week since its latest half-year results. Revenue of US$62m came in 3.0% ahead of expectations, although statutory earnings didn't fare nearly so well, recording a loss of US$0.031, a 19% miss. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Catapult Group International after the latest results.

View our latest analysis for Catapult Group International

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ASX:CAT Earnings and Revenue Growth November 15th 2024

Following the latest results, Catapult Group International's four analysts are now forecasting revenues of US$115.2m in 2025. This would be an okay 6.6% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 26% to US$0.045. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$112.9m and losses of US$0.046 per share in 2025. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for both revenues and losses per share.

The consensus price target rose 22% to AU$3.25, with the analysts encouraged by the higher revenue and lower forecast losses for next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Catapult Group International analyst has a price target of AU$3.50 per share, while the most pessimistic values it at AU$2.91. 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.

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. The analysts are definitely expecting Catapult Group International's growth to accelerate, with the forecast 14% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.8% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 16% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Catapult Group International is expected to grow at about the same rate as the wider industry.