New Forecasts: Here's What Analysts Think The Future Holds For Surge Energy Inc. (TSE:SGY)
Shareholders in Surge Energy Inc. (TSE:SGY) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Surge Energy will make substantially more sales than they'd previously expected.
After the upgrade, the twin analysts covering Surge Energy are now predicting revenues of CA$775m in 2023. If met, this would reflect a substantial 32% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$616m in 2023. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
Check out our latest analysis for Surge Energy
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. It's clear from the latest estimates that Surge Energy's rate of growth is expected to accelerate meaningfully, with the forecast 25% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 14% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 1.5% per year. So it's clear with the acceleration in growth, Surge Energy is expected to grow meaningfully faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Surge Energy next year. They're also forecasting for revenues to perform better than companies in the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Surge Energy.
Analysts are clearly in love with Surge Energy at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other flags 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.
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