Analysts Just Published A Bright New Outlook For DigitalBridge Group, Inc.'s (NYSE:DBRG)

DigitalBridge Group, Inc. (NYSE:DBRG) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the consensus from four analysts covering DigitalBridge Group is for revenues of US$583m in 2024, implying a painful 65% decline in sales compared to the last 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.14 per share next year. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$493m and losses of US$0.30 per share in 2024. So we can see that this has sparked a pretty clear upgrade to expectations, with higher revenues anticipated to lead to profit sooner than previously forecast.

View our latest analysis for DigitalBridge Group

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$22.38, suggesting that the forecast performance does not have a long term impact on the company's valuation.

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. Over the past five years, revenues have declined around 1.1% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 57% decline in revenue until the end of 2024. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.1% per year. So while a broad number of companies are forecast to grow, unfortunately DigitalBridge Group is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The most important thing to take away from this upgrade is that the consensus now expects DigitalBridge Group to become profitable next year. Pleasantly, analysts also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So DigitalBridge Group could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for DigitalBridge Group going out to 2025, 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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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.