Brokers Are Upgrading Their Views On Comfort Systems USA, Inc. (NYSE:FIX) With These New Forecasts

Celebrations may be in order for Comfort Systems USA, Inc. (NYSE:FIX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Comfort Systems USA has also found favour with investors, with the stock up a noteworthy 17% to US$976 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

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After this upgrade, Comfort Systems USA's eight analysts are now forecasting revenues of US$10b in 2026. This would be a huge 21% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 28% to US$30.37. Prior to this update, the analysts had been forecasting revenues of US$9.2b and earnings per share (EPS) of US$25.95 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

See our latest analysis for Comfort Systems USA

It will come as no surprise to learn that the analysts have increased their price target for Comfort Systems USA 36% to US$1,133 on the back of these upgrades.

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. It's pretty clear that there is an expectation that Comfort Systems USA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 17% growth on an annualised basis. This is compared to a historical growth rate of 24% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.8% annually. So it's pretty clear that, while Comfort Systems USA's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next 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. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Comfort Systems USA.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Comfort Systems USA analysts - going out to 2027, and you can see them free on our platform 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.