Analysts Just Made A Meaningful Upgrade To Their Coterra Energy Inc. (NYSE:CTRA) Forecasts

Coterra Energy Inc. (NYSE:CTRA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

After the upgrade, the 16 analysts covering Coterra Energy are now predicting revenues of US$7.3b in 2025. If met, this would reflect a substantial 33% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 75% to US$2.93. Previously, the analysts had been modelling revenues of US$6.4b and earnings per share (EPS) of US$2.42 in 2025. 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 Coterra Energy

It will come as no surprise to learn that the analysts have increased their price target for Coterra Energy 5.9% to US$32.30 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Coterra Energy's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Coterra Energy'shistorical trends, as the 25% annualised revenue growth to the end of 2025 is roughly in line with the 29% annual revenue growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.1% per year. So it's pretty clear that Coterra 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 the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Coterra Energy could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Coterra Energy analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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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.