News Flash: Analysts Just Made A Meaningful Upgrade To Their HF Sinclair Corporation (NYSE:DINO) Forecasts

HF Sinclair Corporation (NYSE:DINO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 8.5% to US$42.29 over the past 7 days. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the current consensus from HF Sinclair's eleven analysts is for revenues of US$35b in 2022 which - if met - would reflect a substantial 91% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$29b in 2022. The consensus has definitely become more optimistic, showing a sizeable gain to revenue forecasts.

View our latest analysis for HF Sinclair

There was no particular change to the consensus price target of US$45.93, with HF Sinclair's latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on HF Sinclair, with the most bullish analyst valuing it at US$55.00 and the most bearish at US$31.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting HF Sinclair's growth to accelerate, with the forecast 136% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 2.8% annually. It seems obvious that as part of the brighter growth outlook, HF Sinclair is expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for HF Sinclair this year. They're also forecasting for revenues to perform better than companies in the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at HF Sinclair.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential flags with HF Sinclair, including dilutive stock issuance over the past year. You can learn more, and discover the 2 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.

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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.