Shareholders in PSC Insurance Group Limited (ASX:PSI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects.
Following the upgrade, the most recent consensus for PSC Insurance Group from its three analysts is for revenues of AU$200m in 2021 which, if met, would be a solid 15% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$173m in 2021. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.
Check out our latest analysis for PSC Insurance Group
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. It’s pretty clear that there is an expectation that PSC Insurance Group’s revenue growth will slow down substantially, with revenues next year expected to grow 15%, compared to a historical growth rate of 22% over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.8% per year. So it’s clear that despite the slowdown in growth, PSC Insurance Group is still expected to grow meaningfully faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. Analysts also expect revenues to perform better than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at PSC Insurance Group.
Analysts are clearly in love with PSC Insurance 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 4 other concerns we’ve identified .
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 that insiders are buying.
This article by Simply Wall St is general in nature. 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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