News Flash: Analysts Just Made A Captivating Upgrade To Their Kaiser Aluminum Corporation (NASDAQ:KALU) Forecasts

Celebrations may be in order for Kaiser Aluminum Corporation (NASDAQ:KALU) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Kaiser Aluminum will make substantially more sales than they'd previously expected.

After this upgrade, Kaiser Aluminum's three analysts are now forecasting revenues of US$3.5b in 2022. This would be a substantial 35% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$3.2b of revenue in 2022. It looks like there's been a clear increase in optimism around Kaiser Aluminum, given the nice gain to revenue forecasts.

View our latest analysis for Kaiser Aluminum

There was no particular change to the consensus price target of US$104, with Kaiser Aluminum's latest outlook seemingly not enough to result in a change of 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 Kaiser Aluminum, with the most bullish analyst valuing it at US$130 and the most bearish at US$93.00 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. The analysts are definitely expecting Kaiser Aluminum's growth to accelerate, with the forecast 35% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Kaiser Aluminum is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Kaiser Aluminum 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 Kaiser Aluminum.

Analysts are definitely bullish on Kaiser Aluminum, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other flags we've identified, for free on our platform here.

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.