Industry Analysts Just Made A Sizeable Upgrade To Their PBF Energy Inc. (NYSE:PBF) Revenue Forecasts
Shareholders in PBF Energy Inc. (NYSE:PBF) 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.
Following the upgrade, the latest consensus from PBF Energy's nine analysts is for revenues of US$22b in 2021, which would reflect a sizeable 44% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 52% to US$5.55. However, before this estimates update, the consensus had been expecting revenues of US$19b and US$5.99 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a sizeable increase to their revenue forecasts while also reducing the estimated loss as the business grows towards breakeven.
Check out our latest analysis for PBF Energy
It will come as no surprise to learn that the analysts have increased their price target for PBF Energy 7.0% to US$7.17 on the back of these upgrades. 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. There are some variant perceptions on PBF Energy, with the most bullish analyst valuing it at US$9.50 and the most bearish at US$4.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting PBF Energy's growth to accelerate, with the forecast 44% growth ranking favourably alongside historical growth of 8.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that PBF Energy is expected to grow much faster than its industry.
The Bottom Line
The most important thing here is that analysts reduced their loss per share estimates for this year, reflecting increased optimism around PBF Energy's prospects. They also upgraded their revenue estimates for this year, and sales are expected 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 PBF Energy.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple PBF Energy analysts - going out to 2023, and you can see them 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.
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