News Flash: Analysts Just Made A Sizeable Upgrade To Their New Jersey Resources Corporation (NYSE:NJR) Forecasts
Celebrations may be in order for New Jersey Resources Corporation (NYSE:NJR) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for New Jersey Resources from its six analysts is for revenues of US$2.4b in 2024 which, if met, would be a substantial 23% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$2.1b of revenue in 2024. It looks like there's been a clear increase in optimism around New Jersey Resources, given the nice gain to revenue forecasts.
Check out our latest analysis for New Jersey Resources
We'd point out that there was no major changes to their price target of US$48.00, suggesting the latest estimates were not enough to shift their view on the value of the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that New Jersey Resources is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2024. If achieved, this would be a much better result than the 1.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.0% annually. Not only are New Jersey Resources' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for New Jersey Resources this year. They're also forecasting more rapid revenue growth than 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 New Jersey Resources.
Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on New Jersey Resources that suggests the company could be somewhat undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
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.
