RE: earnings forecasts26 Oct 2016 09:05
cromer
For the benefit of those who don't read any other BBs I have cut and pasted my reply to this identical comment that you posted elsewhere. For the avoidance of doubt I am not looking to be confrontational - I welcome sensible debate as it makes one question one's views and hopefully avoid becoming a 'happy clappy' cheerleader of the sort that blights so many threads.
'I am well aware of what the consensus forecasts say and I believe that the trading update, which is due a week today, will lead to these 2017 forecasts being significantly upgraded.
However, IMO the upgrades will still be well short of what FEVR will eventually report next year.
You say that 22x would be typical for a growth stock - that is a reasonable statement in reference to a growth stock with around 20-25% annual growth.
However it is most certainly not true for a company with the potential to grow at a much higher rate than that.
I am on record as believing that FEVR is such a company.
Money is made in growth stocks on earnings surprises - something that FEVR has consistently provided to date'