Analysts Are Betting On Brigham Minerals, Inc. (NYSE:MNRL) With A Big Upgrade This Week

Celebrations may be in order for Brigham Minerals, Inc. (NYSE:MNRL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

After the upgrade, the four analysts covering Brigham Minerals are now predicting revenues of US$373m in 2022. If met, this would reflect a substantial 48% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 42% to US$2.75. Previously, the analysts had been modelling revenues of US$316m and earnings per share (EPS) of US$2.68 in 2022. The forecasts seem more optimistic now, with a nice gain to revenue and a modest lift to earnings per share estimates.

See our latest analysis for Brigham Minerals

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$36.43, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Brigham Minerals at US$46.00 per share, while the most bearish prices it at US$31.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Brigham Minerals' growth to accelerate, with the forecast 119% annualised growth to the end of 2022 ranking favourably alongside historical growth of 34% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 6.1% annually. So it's clear with the acceleration in growth, Brigham Minerals is expected to grow meaningfully 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. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better 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 Brigham Minerals.

Analysts are clearly in love with Brigham Minerals at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other flags we've identified .

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 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.