Yahoo Finance New Forecasts: Here's What Analysts Think The Future Holds For Phibro Animal Health Corporation (NASDAQ:PAHC)
Phibro Animal Health Corporation (NASDAQ:PAHC) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Phibro Animal Health has also found favour with investors, with the stock up a notable 10% to US$18.11 over the past week. Could this upgrade be enough to drive the stock even higher?
Following the upgrade, the current consensus from Phibro Animal Health's three analysts is for revenues of US$1.2b in 2025 which - if met - would reflect a meaningful 17% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 120% to US$0.71. Before this latest update, the analysts had been forecasting revenues of US$1.0b and earnings per share (EPS) of US$0.71 in 2025. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.
Check out our latest analysis for Phibro Animal Health
The consensus price target increased 26% to US$13.50, with an improved revenue forecast carrying the promise of a more valuable business, in time.
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. The analysts are definitely expecting Phibro Animal Health's growth to accelerate, with the forecast 13% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.0% 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 grow their revenue at 9.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Phibro Animal Health to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. They also upgraded their revenue estimates for next year, and sales are expected 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. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Phibro Animal Health.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential warning signs with Phibro Animal Health, including its declining profit margins. For more information, you can click through to our platform to learn more about this and the 2 other warning signs we've identified .
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks 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.
