New Forecasts: Here's What Analysts Think The Future Holds For Excelerate Energy, Inc. (NYSE:EE)

Excelerate Energy, Inc. (NYSE:EE) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Excelerate Energy will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 7.1% to US$23.19 over the past 7 days. Could this big upgrade push the stock even higher?

Following the upgrade, the consensus from three analysts covering Excelerate Energy is for revenues of US$2.0b in 2023, implying a definite 19% decline in sales compared to the last 12 months. Per-share earnings are expected to leap 161% to US$1.33. Previously, the analysts had been modelling revenues of US$1.2b and earnings per share (EPS) of US$1.23 in 2023. The most recent forecasts are noticeably more optimistic, with a great increase in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Excelerate Energy

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$30.50, suggesting that the forecast performance does not have a long term impact on the company's 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. The most optimistic Excelerate Energy analyst has a price target of US$33.00 per share, while the most pessimistic values it at US$29.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or that the analysts have a clear view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 19% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 53% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 6.2% annually for the foreseeable future. So it's pretty clear that Excelerate Energy's revenues are expected to shrink 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. Notably, analysts also upgraded their revenue estimates, with sales performing well although Excelerate Energy's revenue growth is expected to trail that of 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 Excelerate Energy.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Excelerate Energy analysts - going out to 2025, 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 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.