Bullish: Analysts Just Made An Upgrade To Their Diamond S Shipping Inc. (NYSE:DSSI) Forecasts
Shareholders in Diamond S Shipping Inc. (NYSE:DSSI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
After the upgrade, the three analysts covering Diamond S Shipping are now predicting revenues of US$805m in 2020. If met, this would reflect a decent 17% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$727m of revenue in 2020. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
See our latest analysis for Diamond S Shipping
There was no particular change to the consensus price target of US$20.37, with Diamond S Shipping's latest outlook seemingly not enough to result in a change of valuation. 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 Diamond S Shipping analyst has a price target of US$25.00 per share, while the most pessimistic values it at US$18.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Diamond S Shipping shareholders.
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. We would highlight that Diamond S Shipping's revenue growth is expected to slow, with forecast 17% increase next year well below the historical 29% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.6% next year. So it's pretty clear that, while Diamond S Shipping's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Diamond S Shipping could be a good candidate for more research.
Looking for more information? At least one of Diamond S Shipping's three analysts has provided estimates out to 2023, which can be seen 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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