Yahoo Finance Analysts' Revenue Estimates For Canadian Utilities Limited (TSE:CU) Are Surging Higher
Shareholders in Canadian Utilities Limited (TSE:CU) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts have sharply increased their revenue numbers, with a view that Canadian Utilities will make substantially more sales than they'd previously expected.
Following the latest upgrade, Canadian Utilities' seven analysts currently expect revenues in 2022 to be CA$3.7b, approximately in line with the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$3.2b in 2022. The consensus has definitely become more optimistic, showing a solid increase in revenue forecasts.
Check out our latest analysis for Canadian Utilities
There was no particular change to the consensus price target of CA$39.71, with Canadian Utilities' latest outlook seemingly not enough to result in a change of valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Canadian Utilities analyst has a price target of CA$41.00 per share, while the most pessimistic values it at CA$35.75. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Canadian Utilities' past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2022 compared to the historical decline of 4.5% per annum 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 grow 4.1% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Canadian Utilities to suffer worse than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Canadian Utilities this year. They also expect company revenue to perform worse 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 Canadian Utilities.
Looking to learn more? At least one of Canadian Utilities' seven analysts has provided estimates out to 2024, 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.
