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Growth Investors: Industry Analysts Just Upgraded Their Par Pacific Holdings, Inc. (NYSE:PARR) Revenue Forecasts By 19%

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Simply Wall St
·3 min read
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Shareholders in Par Pacific Holdings, Inc. (NYSE:PARR) 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 analysts now much more optimistic on its sales pipeline. The market seems to be pricing in some improvement in the business too, with the stock up 7.0% over the past week, closing at US$17.67. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the most recent consensus for Par Pacific Holdings from its six analysts is for revenues of US$4.3b in 2021 which, if met, would be a major 39% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$3.6b of revenue in 2021. It looks like there's been a clear increase in optimism around Par Pacific Holdings, given the decent improvement in revenue forecasts.

Check out our latest analysis for Par Pacific Holdings

earnings-and-revenue-growth
earnings-and-revenue-growth

The consensus price target rose 21% to US$17.20, with the analysts clearly more optimistic about Par Pacific Holdings' prospects following this update. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Par Pacific Holdings at US$20.00 per share, while the most bearish prices it at US$11.00. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Par Pacific Holdings' past performance and to peers in the same industry. The analysts are definitely expecting Par Pacific Holdings' growth to accelerate, with the forecast 39% annualised growth to the end of 2021 ranking favourably alongside historical growth of 21% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Par Pacific Holdings to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Par Pacific Holdings this year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Par Pacific Holdings.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect Par Pacific Holdings to be able to reach break-even within the next few years. You can learn more about these forecasts, 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.

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.