News Flash: Analysts Just Made A Dazzling Upgrade To Their Gibson Energy Inc. (TSE:GEI) Forecasts

Shareholders in Gibson Energy Inc. (TSE:GEI) 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.

Following the upgrade, the consensus from nine analysts covering Gibson Energy is for revenues of CA$11b in 2024, implying a discernible 5.3% decline in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing CA$6.9b of revenue in 2024. It looks like there's been a clear increase in optimism around Gibson Energy, given the sizeable gain to revenue forecasts.

View our latest analysis for Gibson Energy

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. We would highlight that sales are expected to reverse, with a forecast 7.0% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 14% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Gibson Energy is expected to lag the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Gibson Energy this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Gibson Energy.

Analysts are clearly in love with Gibson Energy at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as its declining profit margins. For more information, you can click through to our platform to learn more about this and the 4 other concerns we've identified .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.