Industry Analysts Just Upgraded Their Viper Energy, Inc. (NASDAQ:VNOM) Revenue Forecasts By 17%

Viper Energy, Inc. (NASDAQ:VNOM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Viper Energy will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 6.8% to US$50.01 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the current consensus from Viper Energy's four analysts is for revenues of US$1.1b in 2025 which - if met - would reflect a major 39% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 26% to US$2.03. Prior to this update, the analysts had been forecasting revenues of US$945m and earnings per share (EPS) of US$1.89 in 2025. The forecasts seem more optimistic now, with a decent improvement in revenue and a small lift in earnings per share estimates.

See our latest analysis for Viper Energy

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$60.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Viper Energy's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Viper Energy'shistorical trends, as the 30% annualised revenue growth to the end of 2025 is roughly in line with the 27% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.8% annually. So it's pretty clear that Viper Energy is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Viper Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Viper Energy going out to 2026, and you can see them 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 with high insider ownership.

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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.