Analysts Just Made A Substantial Upgrade To Their Borr Drilling Limited (OB:BORR) Forecasts

Borr Drilling Limited (OB:BORR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After the upgrade, the two analysts covering Borr Drilling are now predicting revenues of US$420m in 2022. If met, this would reflect a sizeable 78% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 32% to US$0.51. Yet before this consensus update, the analysts had been forecasting revenues of US$364m and losses of US$0.67 per share in 2022. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.

View our latest analysis for Borr Drilling

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Borr Drilling's growth to accelerate, with the forecast 58% annualised growth to the end of 2022 ranking favourably alongside historical growth of 36% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Borr Drilling is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Borr Drilling is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. The clear improvement in sentiment should be enough to get most shareholders feeling more optimistic about Borr Drilling's future.

Analysts are definitely bullish on Borr Drilling, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. You can learn more, and discover the 3 other flags we've identified, for 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.

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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