New Forecasts: Here's What Analysts Think The Future Holds For TravelCenters of America Inc. (NASDAQ:TA)

Shareholders in TravelCenters of America Inc. (NASDAQ:TA) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on TravelCenters of America too, with the stock up 12% to US$36.86 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the three analysts covering TravelCenters of America are now predicting revenues of US$7.1b in 2021. If met, this would reflect a major 20% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$6.4b in 2021. It looks like there's been a clear increase in optimism around TravelCenters of America, given the decent improvement in revenue forecasts.

Check out our latest analysis for TravelCenters of America

Additionally, the consensus price target for TravelCenters of America increased 17% to US$45.50, showing a clear increase in optimism from the analysts involved. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic TravelCenters of America analyst has a price target of US$48.00 per share, while the most pessimistic values it at US$44.00. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that TravelCenters of America's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 0.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TravelCenters of America to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for TravelCenters of America this year. The analysts also expect revenues to grow faster 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at TravelCenters of America.

Need some more information? At least one of TravelCenters of America's three analysts has provided estimates out to 2023, which can be seen 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.
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