ASX:GSS) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The stock price has risen 4.5% to AU$2.08 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.” data-reactid=”28″ type=”text”>Celebrations may be in order for Genetic Signatures Limited (ASX:GSS) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The stock price has risen 4.5% to AU$2.08 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.
Following the upgrade, the latest consensus from Genetic Signatures’ solo analyst is for revenues of AU$12m in 2020, which would reflect a sizeable 60% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 34% to AU$0.025. However, before this estimates update, the consensus had been expe Check out our latest analysis for Genetic Signatures cting revenues of AU$8.5m and AU$0.036 per share in losses. We can see there’s definitely been a change in sentiment in this update, with the analyst administering a sizeable upgrade to this year’s revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Genetic Signatures ” data-reactid=”30″ type=”text”>
The consensus price target rose 73% to AU$2.60, with the analyst encouraged by the higher revenue and lower forecast losses for this year.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Genetic Signatures’ past performance and to peers in the same industry. It’s clear from the latest estimates that Genetic Signatures’ rate of growth is expected to accelerate meaningfully, with the forecast 60% revenue growth noticeably faster than its historical growth of 24% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% next year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Genetic Signatures is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses this year, perhaps suggesting Genetic Signatures is moving incrementally towards profitability. Fortunately, the analyst also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Genetic Signatures could be worth investigating further.
