Bullish: Analysts Just Made A Huge Upgrade To Their Alpha Metallurgical Resources, Inc. (NYSE:AMR) Forecasts
Alpha Metallurgical Resources, Inc. (NYSE:AMR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following the upgrade, the latest consensus from Alpha Metallurgical Resources' dual analysts is for revenues of US$4.1b in 2022, which would reflect a sizeable 40% improvement in sales compared to the last 12 months. Per-share earnings are expected to surge 129% to US$88.16. Prior to this update, the analysts had been forecasting revenues of US$3.4b and earnings per share (EPS) of US$63.40 in 2022. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
View our latest analysis for Alpha Metallurgical Resources
It will come as no surprise to learn that the analysts have increased their price target for Alpha Metallurgical Resources 17% to US$181 on the back of these upgrades.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Alpha Metallurgical Resources' growth to accelerate, with the forecast 57% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.8% annually. So it's clear with the acceleration in growth, Alpha Metallurgical Resources is expected to grow meaningfully 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Alpha Metallurgical Resources could be worth investigating further.
Analysts are definitely bullish on Alpha Metallurgical Resources, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other warning signs we've identified, for 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.
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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.