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Analysts Just Made A Substantial Upgrade To Their Pyxis Tankers Inc. (NASDAQ:PXS) Forecasts

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Pyxis Tankers Inc. (NASDAQ:PXS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Investor sentiment seems to be improving too, with the share price up 9.3% to US$2.71 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the latest consensus from Pyxis Tankers' three analysts is for revenues of US$34m in 2022, which would reflect a substantial 32% improvement in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.72 per share this year. Prior to this update, the analysts had been forecasting revenues of US$30m and earnings per share (EPS) of US$0.48 in 2022. 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.

Check out our latest analysis for Pyxis Tankers

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earnings-and-revenue-growth

As a result, it might be a surprise to see that the analysts have cut their price target 14% to US$4.63, which could suggest the forecast improvement in performance is not expected to last. 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. The most optimistic Pyxis Tankers analyst has a price target of US$6.00 per share, while the most pessimistic values it at US$3.40. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Pyxis Tankers is forecast to grow faster in the future than it has in the past, with revenues expected to display 45% annualised growth until the end of 2022. If achieved, this would be a much better result than the 6.8% annual decline over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 5.3% annually for the foreseeable future. So it's pretty clear that Pyxis Tankers is expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. A lower price target is not intuitively what we would expect from a company whose business prospects are improving - at least judging by these forecasts - but if the underlying fundamentals are strong, Pyxis Tankers could be one for the watch list.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Pyxis Tankers going out to 2024, and you can see them free on our platform here..

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.

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.