Analysts Just Published A Bright New Outlook For Navigator Global Investments Limited's (ASX:NGI)

Navigator Global Investments Limited (ASX:NGI) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the current consensus from Navigator Global Investments' three analysts is for revenues of US$157m in 2024 which - if met - would reflect a huge 88% increase on its sales over the past 12 months. Statutory earnings per share are forecast to be US$0.15, approximately in line with the last 12 months. Previously, the analysts had been modelling revenues of US$120m and earnings per share (EPS) of US$0.13 in 2024. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Navigator Global Investments

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$1.96, suggesting that the forecast performance does not have a long term impact on the company's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Navigator Global Investments' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 88% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 3.8% a year 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 2.9% annually. Not only are Navigator Global Investments' revenues expected to improve, it seems that the analysts are also expecting it 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 this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at Navigator Global Investments.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Navigator Global Investments going out to 2026, 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.

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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.