Need To Know: Analysts Are Much More Bullish On Alpha Metallurgical Resources, Inc. (NYSE:AMR)

Shareholders in Alpha Metallurgical Resources, Inc. (NYSE:AMR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

After this upgrade, Alpha Metallurgical Resources' two analysts are now forecasting revenues of US$4.1b in 2022. This would be a substantial 40% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to bounce 129% to US$88.16. Prior to this update, the analysts had been forecasting revenues of US$3.4b and earnings per share (EPS) of US$63.40 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Alpha Metallurgical Resources

It will come as no surprise to learn that the analysts have increased their price target for Alpha Metallurgical Resources 17% to US$181 on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Alpha Metallurgical Resources' past performance and to peers in the same industry. The analysts are definitely expecting Alpha Metallurgical Resources' growth to accelerate, with the forecast 57% annualised growth to the end of 2022 ranking favourably alongside historical growth of 6.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 2.7% per year. It seems obvious that as part of the brighter growth outlook, Alpha Metallurgical Resources is expected to grow 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. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Alpha Metallurgical Resources could be worth investigating further.

Analysts are clearly in love with Alpha Metallurgical Resources 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. You can learn more, and discover the 2 other risks we've identified, for 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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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.