Celebrations may be in order for SHAPE Australia Corporation Limited (ASX:SHA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the most recent consensus for SHAPE Australia from its five analysts is for revenues of AU$1.6b in 2027 which, if met, would be a huge 29% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$1.4b in 2027. It looks like there's been a clear increase in optimism around SHAPE Australia, given the solid increase in revenue forecasts.
See our latest analysis for SHAPE Australia
Additionally, the consensus price target for SHAPE Australia increased 5.9% to AU$8.93, showing a clear increase in optimism from the analysts involved.
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 SHAPE Australia's growth to accelerate, with the forecast 29% annualised growth to the end of 2027 ranking favourably alongside historical growth of 13% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SHAPE Australia is expected to grow much faster than its industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for SHAPE Australia this year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SHAPE Australia.
Still got questions? At least one of SHAPE Australia's five analysts has provided estimates out to 2029, which can be seen 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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