Need To Know: Analysts Are Much More Bullish On EnLink Midstream, LLC (NYSE:ENLC) Revenues
Shareholders in EnLink Midstream, LLC (NYSE:ENLC) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
Following the upgrade, the most recent consensus for EnLink Midstream from its three analysts is for revenues of US$11b in 2023 which, if met, would be a notable 12% increase on its sales over the past 12 months. Per-share earnings are expected to soar 27% to US$0.69. Before this latest update, the analysts had been forecasting revenues of US$9.7b and earnings per share (EPS) of US$0.65 in 2023. The most recent forecasts are noticeably more optimistic, with a decent improvement in revenue estimates and a lift to earnings per share as well.
View our latest analysis for EnLink Midstream
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.9% to US$13.06 per share. 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. There are some variant perceptions on EnLink Midstream, with the most bullish analyst valuing it at US$15.00 and the most bearish at US$11.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EnLink Midstream's past performance and to peers in the same industry. It's clear from the latest estimates that EnLink Midstream's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.4% 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 5.9% per year. It seems obvious that as part of the brighter growth outlook, EnLink Midstream is expected to grow 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 next year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at EnLink Midstream.
Analysts are definitely bullish on EnLink Midstream, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .
Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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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