Nexus Infrastructure plc Analysts Are Pretty Bullish On The Stock After Recent Results
Investors in Nexus Infrastructure plc (LON:NEXS) had a good week, as its shares rose 3.2% to close at UK£1.75 following the release of its full-year results. Overall the results were a little better than analysts were expecting, with revenues beating forecasts by 2.6%to hit UK£155m. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what analysts are forecasting for next year.
See our latest analysis for Nexus Infrastructure
After the latest results, the one analyst covering Nexus Infrastructure are now predicting revenues of UK£171.5m in 2020. If met, this would reflect a decent 11% improvement in sales compared to the last 12 months. Prior to the latest earnings, analysts were forecasting revenues of UK£169.8m in 2020, and did not provide an EPS estimate. It looks like the latest results have met analyst expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.
The average analyst price target rose 27% to UK£1.86, with analysts clearly having become more optimistic about Nexus Infrastructure's prospects following these results.
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 clear from the latest estimates that Nexus Infrastructure's rate of growth is expected to accelerate meaningfully, with forecast 11% revenue growth noticeably faster than its historical growth of 4.6%p.a. over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 2.6% next year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect Nexus Infrastructure to grow faster than the wider market.
The Bottom Line
The biggest takeaway for us from these new estimates is the bullish forecast for profits next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. There was also a nice increase in the price target, with analysts feeling that the intrinsic value of the business is improving.
We have estimates for Nexus Infrastructure from one covering analyst, and you can see them free on our platform here.
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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