Need To Know: Analysts Are Much More Bullish On Navigator Global Investments Limited (ASX:NGI) Revenues

Navigator Global Investments Limited (ASX:NGI) 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.

After the upgrade, the three analysts covering Navigator Global Investments are now predicting revenues of US$141m in 2024. If met, this would reflect a major 69% improvement in sales compared to the last 12 months. Statutory earnings per share are supposed to reduce 2.2% to US$0.14 in the same period. Prior to this update, the analysts had been forecasting revenues of US$119m and earnings per share (EPS) of US$0.13 in 2024. The most recent forecasts are noticeably more optimistic, with a substantial gain in revenue estimates and a lift to earnings per share as well.

See our latest analysis for Navigator Global Investments

earnings-and-revenue-growth

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.1% to AU$2.02 per share.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Navigator Global Investments is forecast to grow faster in the future than it has in the past, with revenues expected to display 69% annualised growth until the end of 2024. If achieved, this would be a much better result than the 3.8% annual decline 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 2.8% annually. Not only are Navigator Global Investments' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this 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. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Navigator Global Investments.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Navigator Global Investments going out to 2026, and you can see them free on our platform here..

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.