New Forecasts: Here's What Analysts Think The Future Holds For Bit Digital, Inc. (NASDAQ:BTBT)

Celebrations may be in order for Bit Digital, Inc. (NASDAQ:BTBT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Bit Digital has also found favour with investors, with the stock up a noteworthy 14% to US$2.58 over the past week. Could this upgrade be enough to drive the stock even higher?

After the upgrade, the two analysts covering Bit Digital are now predicting revenues of US$82m in 2024. If met, this would reflect a sizeable 123% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 77% to US$0.20 per share. However, before this estimates update, the consensus had been expecting revenues of US$67m and US$0.24 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.

See our latest analysis for Bit Digital

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These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bit Digital's past performance and to peers in the same industry. The analysts are definitely expecting Bit Digital's growth to accelerate, with the forecast 90% annualised growth to the end of 2024 ranking favourably alongside historical growth of 35% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Bit Digital to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Bit Digital is moving incrementally towards profitability. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at Bit Digital.

Analysts are clearly in love with Bit Digital at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 3 other risks 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 that insiders are buying.

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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.