Industry Analysts Just Made An Incredible Upgrade To Their Navigator Global Investments Limited (ASX:NGI) Revenue Forecasts

Shareholders in Navigator Global Investments Limited (ASX:NGI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The market seems to be pricing in some improvement in the business too, with the stock up 7.3% over the past week, closing at AU$2.00. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

After this upgrade, Navigator Global Investments' two analysts are now forecasting revenues of US$127m in 2022. This would be a decent 14% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to tumble 26% to US$0.11 in the same period. Prior to this update, the analysts had been forecasting revenues of US$91m and earnings per share (EPS) of US$0.10 in 2022. The most recent forecasts are noticeably more optimistic, with a considerable lift to revenue estimates and a lift to earnings per share as well.

Check out our latest analysis for Navigator Global Investments

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Navigator Global Investments' rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 8.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.5% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Navigator Global Investments 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. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Navigator Global Investments.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

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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