Shareholders in CoreCard Corporation (NYSE:CCRD) may be thrilled to learn that the covering analyst has just delivered a major upgrade to their near-term forecasts. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. CoreCard has also found favour with investors, with the stock up an impressive 18% to US$16.53 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the sole analyst covering CoreCard is now predicting revenues of US$63m in 2025. If met, this would reflect a meaningful 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 81% to US$0.92. Previously, the analyst had been modelling revenues of US$57m and earnings per share (EPS) of US$0.62 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for CoreCard

It will come as no surprise to learn that the analyst has increased their price target for CoreCard 6.7% to US$16.00 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of CoreCard'shistorical trends, as the 12% annualised revenue growth to the end of 2025 is roughly in line with the 13% annual revenue growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. So although CoreCard is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for next year, expecting improving business conditions. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at CoreCard.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for CoreCard going out as far as 2025, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.