Celebrations may be in order for InPlay Oil Corp. (TSE:IPO) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.
After this upgrade, InPlay Oil’s twin analysts are now forecasting revenues of CA$485m in 2027. This would be a huge 53% improvement in sales compared to the last 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting CA$1.65 in per-share earnings. Before this latest update, the analysts had been forecasting revenues of CA$431m and earnings per share (EPS) of CA$1.65 in 2027. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven’t changed their view on earnings per share.
Check out our latest analysis for InPlay Oil
Even though revenue forecasts increased, there was no change to the consensus price target of CA$26.17, suggesting the analysts are focused on earnings as the driver of value creation.
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 InPlay Oil’s growth to accelerate, with the forecast 40% annualised growth to the end of 2027 ranking favourably alongside historical growth of 17% 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 0.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect InPlay Oil to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for next year, and sales are expected to grow faster 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 InPlay Oil.
Analysts are definitely bullish on InPlay Oil, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including the risk of cutting its dividend. You can learn more, and discover the 1 other risk we’ve identified, for free on our platform here.
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.
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