COBZ

CoBiz Financial Inc.

0.1100
USD
0.00%
0.1100
USD
0.00%
0.0000 0.0000
52 weeks
52 weeks

Mkt Cap 4.66M

Shares Out 42.40M

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Here's What Analysts Are Forecasting For ForgeRock, Inc. (NYSE:FORG) After Its Second-Quarter Results

There's been a major selloff in ForgeRock, Inc. (NYSE:FORG) shares in the week since it released its quarterly report, with the stock down 24% to US$17.55. Sales hit US$48m in line with forecasts, although the company reported a statutory loss per share of US$0.26 that was somewhat smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ForgeRock after the latest results. Taking into account the latest results, the consensus forecast from ForgeRock's ten analysts is for revenues of US$213.8m in 2022, which would reflect a solid 14% improvement in sales compared to the last 12 months. Losses are supposed to decline, shrinking 11% from last year to US$0.69. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$213.8m and losses of US$0.69 per share in 2022. As a result there was no major change to the consensus price target of US$22.88, implying that the business is trading roughly in line with expectations despite ongoing losses. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values ForgeRock at US$30.00 per share, while the most bearish prices it at US$15.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ForgeRock's past performance and to peers in the same industry. It's clear from the latest estimates that ForgeRock's rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 20% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ForgeRock to grow faster than the wider industry. The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. With that in mind, we wouldn't be too quick to come to a conclusion on ForgeRock. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple ForgeRock analysts - going out to 2024, and you can see them free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for ForgeRock that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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