Broker Revenue Forecasts For NexTier Oilfield Solutions Inc. (NYSE:NEX) Are Surging Higher

NexTier Oilfield Solutions Inc. (NYSE:NEX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The analysts have sharply increased their revenue numbers, with a view that NexTier Oilfield Solutions will make substantially more sales than they'd previously expected. The market seems to be pricing in some improvement in the business too, with the stock up 5.6% over the past week, closing at US$11.03. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

Following the upgrade, the latest consensus from NexTier Oilfield Solutions' ten analysts is for revenues of US$2.9b in 2022, which would reflect a sizeable 58% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$2.6b in 2022. The consensus has definitely become more optimistic, showing a decent improvement in revenue forecasts.

Check out our latest analysis for NexTier Oilfield Solutions

Additionally, the consensus price target for NexTier Oilfield Solutions increased 12% to US$12.51, showing a clear increase in optimism from the analysts involved. 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. The most optimistic NexTier Oilfield Solutions analyst has a price target of US$15.00 per share, while the most pessimistic values it at US$9.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that NexTier Oilfield Solutions' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 85% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 0.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.8% per year. Not only are NexTier Oilfield Solutions' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for NexTier Oilfield Solutions this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at NexTier Oilfield Solutions.

That's a pretty serious upgrade, but shareholders might be even more pleased to know that forecasts expect NexTier Oilfield Solutions to be able to reach break-even within the next few years. For more information, you can click through to our free platform to learn more about these forecasts.

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.