New Jersey Resources Corporation (NYSE:NJR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from New Jersey Resources' six analysts is for revenues of US$2.4b in 2024 which - if met - would reflect a substantial 23% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$2.1b in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
Check out our latest analysis for New Jersey Resources
We'd point out that there was no major changes to their price target of US$48.00, suggesting the latest estimates were not enough to shift their view on the value of the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that New Jersey Resources' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.9% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.0% annually. So it looks like New Jersey Resources is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for New Jersey Resources this year. They're also forecasting more rapid revenue growth 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 New Jersey Resources.
Better yet, our automated discounted cash flow calculation (DCF) suggests New Jersey Resources could be moderately undervalued. For more information, you can click through to our platform to learn more about our valuation approach.
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.