Need To Know: Analysts Are Much More Bullish On Brigham Minerals, Inc. (NYSE:MNRL) Revenues

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 analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Brigham Minerals' seven analysts is for revenues of US$129m in 2021, which would reflect a substantial 41% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$116m in 2021. It looks like there's been a clear increase in optimism around Brigham Minerals, given the substantial gain in revenue forecasts.

Check out our latest analysis for Brigham Minerals

We'd point out that there was no major changes to their price target of US$17.18, suggesting the latest estimates were not enough to shift their view on the value of the business. 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$20.00 per share, while the most bearish prices it at US$14.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Brigham Minerals shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Brigham Minerals' rate of growth is expected to accelerate meaningfully, with the forecast 41% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 25% p.a. over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Brigham Minerals to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Brigham Minerals this year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be 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 the risk of cutting its dividend. For more information, you can click through to our platform to learn more about this and the 1 other concern 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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