Rainbows and Unicorns: Star Bulk Carriers Corp. (NASDAQ:SBLK) Analysts Just Became A Lot More Optimistic

Shareholders in Star Bulk Carriers Corp. (NASDAQ:SBLK) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance.

Following the upgrade, the most recent consensus for Star Bulk Carriers from its five analysts is for revenues of US$1.1b in 2024 which, if met, would be a meaningful 9.7% increase on its sales over the past 12 months. Per-share earnings are expected to soar 115% to US$3.82. Prior to this update, the analysts had been forecasting revenues of US$919m and earnings per share (EPS) of US$3.45 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Star Bulk Carriers

It will come as no surprise to learn that the analysts have increased their price target for Star Bulk Carriers 12% to US$30.55 on the back of these upgrades.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 13% growth on an annualised basis. That is in line with its 12% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 0.5% annually. So it's clear that not only is revenue growth expected to be maintained, but Star Bulk Carriers is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. On the plus side, they also lifted their revenue estimates, and the company is expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Star Bulk Carriers.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Star Bulk Carriers that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.