Need To Know: Analysts Are Much More Bullish On ProAssurance Corporation (NYSE:PRA) Revenues

Shareholders in ProAssurance Corporation (NYSE:PRA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. The stock price has risen 5.6% to US$21.41 over the past week, suggesting investors are becoming more optimistic. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.

After this upgrade, ProAssurance's three analysts are now forecasting revenues of US$1.1b in 2021. This would be a major 26% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$973m of revenue in 2021. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.

View our latest analysis for ProAssurance

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 ProAssurance's rate of growth is expected to accelerate meaningfully, with the forecast 58% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 2.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ProAssurance to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for ProAssurance this year. The analysts also expect revenues to grow faster 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 ProAssurance.

Looking for more information? We have analyst estimates for ProAssurance going out to 2022, and you can see them free on our platform here.

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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