Shareholders in Inseego Corp. (NASDAQ:INSG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Inseego has also found favour with investors, with the stock up a worthy 16% to US$4.54 over the past week. Could this upgrade be enough to drive the stock even higher?
After the upgrade, the three analysts covering Inseego are now predicting revenues of US$302m in 2027. If met, this would reflect a sizeable 89% improvement in sales compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.58 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$170m and losses of US$2.04 per share in 2027. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
View our latest analysis for Inseego
The consensus price target fell 33%, to US$9.17, suggesting that the analysts remain pessimistic on the company, despite the improved earnings and revenue outlook.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Inseego's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 66% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 12% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 15% annually. Not only are Inseego's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for next year, reflecting increased optimism around Inseego's prospects. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, Inseego could be one for the watch list.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential concerns with Inseego, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 3 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 with high insider ownership.
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