Analysts Just Published A Bright New Outlook For CNX Resources Corporation's (NYSE:CNX)
CNX Resources Corporation (NYSE:CNX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. CNX Resources has also found favour with investors, with the stock up a worthy 11% to US$20.40 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
After the upgrade, the seven analysts covering CNX Resources are now predicting revenues of US$3.0b in 2023. If met, this would reflect a credible 3.8% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to tumble 44% to US$6.68 in the same period. Previously, the analysts had been modelling revenues of US$2.6b and earnings per share (EPS) of US$4.66 in 2023. 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 CNX Resources
With these upgrades, we're not surprised to see that the analysts have lifted their price target 5.4% to US$19.36 per share. 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 CNX Resources analyst has a price target of US$28.00 per share, while the most pessimistic values it at US$16.00. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that CNX Resources' revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 7.8% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 4.4% annually. Factoring in the forecast slowdown in growth, it's pretty clear that CNX Resources is still expected 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. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, CNX Resources could be worth investigating further.
Analysts are clearly in love with CNX Resources at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as concerns around earnings quality. For more information, you can click through to our platform to learn more about this and the 1 other flag we've identified .
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.
