Shareholders in Gibson Energy Inc. (TSE:GEI) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.
Following this upgrade, Gibson Energy's four analysts are forecasting 2026 revenues to be CA$13b, approximately in line with the last 12 months. Per-share earnings are expected to climb 15% to CA$1.12. Previously, the analysts had been modelling revenues of CA$12b and earnings per share (EPS) of CA$0.95 in 2026. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Gibson Energy
Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of CA$32.54, 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 Gibson Energy's past performance and to peers in the same industry. We would highlight that Gibson Energy's revenue growth is expected to slow, with the forecast 3.8% annualised growth rate until the end of 2026 being well below the historical 8.7% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.8% annually. Even after the forecast slowdown in growth, it seems obvious that Gibson Energy is also 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 this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Gibson Energy could be a good candidate for more research.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Gibson 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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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.