Brokers Are Upgrading Their Views On Baytex Energy Corp. (TSE:BTE) With These New Forecasts
Shareholders in Baytex Energy Corp. (TSE:BTE) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects.
Following the upgrade, the most recent consensus for Baytex Energy from its four analysts is for revenues of CA$1.8b in 2027 which, if met, would be a reasonable 2.4% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of CA$0.63 per share next year. Previously, the analysts had been modelling revenues of CA$1.6b and earnings per share (EPS) of CA$0.51 in 2027. 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 Baytex Energy
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$8.71, suggesting that the forecast performance does not have a long term impact on the company's valuation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Baytex Energy's past performance and to peers in the same industry. It's also worth noting that the years of declining sales look to have come to an end, with the forecast for flat revenues to the end of 2027. Historically, Baytex Energy's sales have shrunk approximately 6.1% annually 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 1.2% annually. Not only are Baytex Energy's revenues expected to improve, it seems that it is expected to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. The lack of change in the price target is puzzling, but with a serious upgrade to next year's earnings expectations, it might be time to take another look at Baytex Energy.
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 Baytex Energy going out to 2028, 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 with high insider ownership.
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