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Colabor Group Inc. (TSE:GCL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Colabor Group will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 9.4% over the past week, closing at CA$0.93. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
After the upgrade, the three analysts covering Colabor Group are now predicting revenues of CA$821m in 2025. If met, this would reflect a sizeable 26% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 187% to CA$0.04. Before this latest update, the analysts had been forecasting revenues of CA$701m and earnings per share (EPS) of CA$0.037 in 2025. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.
Check out our latest analysis for Colabor Group
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$1.87, suggesting that the forecast performance does not have a long term impact on the company's valuation.
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 Colabor Group's growth to accelerate, with the forecast 20% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.8% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Colabor Group is expected to grow much faster than its industry.
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 next year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Colabor Group.
Analysts are clearly in love with Colabor Group at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .