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Analysts' Revenue Estimates For Safe Bulkers, Inc. (NYSE:SB) Are Surging Higher

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Simply Wall St
·3 min read
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Safe Bulkers, Inc. (NYSE:SB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on Safe Bulkers too, with the stock up 27% to US$2.08 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for Safe Bulkers from its dual analysts is for revenues of US$238m in 2021 which, if met, would be a meaningful 19% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$214m in 2021. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.

View our latest analysis for Safe Bulkers


Additionally, the consensus price target for Safe Bulkers increased 50% to US$1.90, showing a clear increase in optimism from the analysts involved. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Safe Bulkers analyst has a price target of US$3.00 per share, while the most pessimistic values it at US$0.45. With such a wide range in price targets, the analysts are almost certainly betting on widely diverse outcomes for the underlying business. As a result it might not be possible to derive much meaning from the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Safe Bulkers' growth to accelerate, with the forecast 19% growth ranking favourably alongside historical growth of 13% 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 3.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Safe Bulkers is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Safe Bulkers next year. They're also forecasting more rapid revenue growth than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Safe Bulkers.

Need some more information? We have analyst estimates for Safe Bulkers going out to 2022, 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 that insiders are buying.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.