Analysts Are Betting On EnLink Midstream, LLC (NYSE:ENLC) With A Big Upgrade This Week

EnLink Midstream, LLC (NYSE:ENLC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The revenue forecast for next year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the most recent consensus for EnLink Midstream from its three analysts is for revenues of US$11b in 2023 which, if met, would be a solid 14% increase on its sales over the past 12 months. Per-share earnings are expected to surge 29% to US$0.70. Previously, the analysts had been modelling revenues of US$10b and earnings per share (EPS) of US$0.68 in 2023. The forecasts seem more optimistic now, with a nice increase in revenue and a modest lift to earnings per share estimates.

View our latest analysis for EnLink Midstream

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$14.00, suggesting that the forecast performance does not have a long term impact on the company's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on EnLink Midstream, with the most bullish analyst valuing it at US$18.00 and the most bearish at US$11.00 per share. This shows there is still some diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that EnLink Midstream's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 2.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 6.3% annually. So it's clear with the acceleration in growth, EnLink Midstream is expected to grow meaningfully faster than the wider 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at EnLink Midstream.

Analysts are definitely bullish on EnLink Midstream, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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.