News Flash: Analysts Just Made A Meaningful Upgrade To Their The Navigator Company, S.A. (ELI:NVG) Forecasts

Shareholders in The Navigator Company, S.A. (ELI:NVG) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the most recent consensus for Navigator Company from its five analysts is for revenues of €2.2b in 2022 which, if met, would be a meaningful 11% increase on its sales over the past 12 months. Per-share earnings are expected to soar 28% to €0.48. Previously, the analysts had been modelling revenues of €2.0b and earnings per share (EPS) of €0.39 in 2022. 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.

Check out our latest analysis for Navigator Company

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of €4.41, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Navigator Company, with the most bullish analyst valuing it at €5.20 and the most bearish at €3.20 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Navigator Company's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 0.8% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 1.0% per year. Not only are Navigator Company's 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. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Navigator Company could be a good candidate for more research.

Analysts are definitely bullish on Navigator Company, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including a weak balance sheet. You can learn more, and discover the 2 other flags we've identified, for free on our platform here.

We also provide an overview of the Navigator Company Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.