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Analysts said their Copperleaf Technologies Inc. (TSE:CPLF) trimmed the price target after its latest report

A week ago, Copperleaf Technologies Inc. (TSE:CPLF) came out with a strong set of second quarter numbers that could potentially lead to a re-rate of the stock. Earnings and losses per share were better than expected, with revenue of CA$21m beating estimates by 9.2%. Statutory losses were smaller than analysts expected, coming in at CA$0.11 per share. This is an important time for investors, as they can track the company’s performance in its report, see what experts are forecasting for the year ahead, and see if there has been any change in business expectations. With this in mind, we’ve compiled the latest statutory forecasts to see what analysts are expecting for the year ahead.

View our latest analysis for Copperleaf Technologies

Earnings-and-Revenue-Growth

Earnings-and-Revenue-Growth

Taking recent results into account, the latest consensus for Copperleaf Technologies from seven analysts is revenue of CA$83.2m in 2022, which, if met, would represent a meaningful 11% increase in its sales over the past 12 months. Losses per share are expected to explode, reaching CA$0.47 per share. Prior to this latest report, the consensus was expecting CA $86.0m in losses and CA $0.50 in revenue per share. So there was a moderate uptick in analyst sentiment with the release of the latest consensus, which upgraded the per-share loss forecasts for this year.

Analysts cut their price target by 19% to CA$11.00 per share, indicating that declining revenue is a more critical indicator than the reduction in loss forecasts. The consensus price target is the average of individual analyst targets, so – it’s useful to see how wide the range of underlying estimates is. Currently, the most bullish analysts value Copperleaf Technologies at CA$14.00 per share, while the most bearish prices are at CA$9.00. There are certainly some different views on the stock, but the range of estimates is not wide enough to suggest that the situation is unpredictable in our view.

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 the forecasts are more or less bullish compared to other companies in the industry. The period ending in 2022 will bring more, according to analysts, with revenues forecast to exhibit 24% growth on an annual basis. That’s in line with its 29% annual growth over the past year. In contrast, our data indicates that other companies in a similar industry (with analyst coverage) are forecasting their revenue to grow by 18% per year. So while Copperleaf Technologies is expected to maintain its revenue growth rate, it is certainly expected to grow faster than the broader industry.

The bottom line

The most obvious conclusion is that analysts have made no changes to their loss forecasts for next year. They also downgraded their revenue estimates even though industry data indicated that Copperleaf Technologies’ revenue is expected to grow faster than the broader industry. However – earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with analysts seemingly unconvinced by recent results, leading to an underestimation of Copperleaf Technologies’ future valuation.

With that in mind, it’s not too early for us to jump to conclusions about Copperleaf Technologies. Long-term earning power is more important than next year’s profits. We have estimates – from multiple Copperleaf Technologies analysts – going out to 2024 and you can see them here on our platform for free.

And what about the risks? Every company has them, and we’ve spotted them 3 warning signs for Copperleaf Technologies (1 of which cannot be ignored!) You should know.

Have feedback on this article? Concerned about content? To keep in touch Directly with us. Alternatively, email the editorial team (at) simplywallst.com.

This article by Simply Wall Saint is general in nature. We provide commentary based on historical data and analyst forecasts and our articles are not intended to be financial advice. It does not recommend buying or selling any stock and does not take into account your objectives or your financial situation. We aim to bring you long-term focused analytics powered by fundamental data. Note that our analysis does not account for recent price-sensitive company announcements or qualitative material. Simply Wall St. has no position in any of the stocks mentioned.

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