NETSTREIT Corp. (NYSE:NTST) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the latest consensus from NETSTREIT's six analysts is for revenues of US$61m in 2021, which would reflect a substantial 30% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 2,349% to US$0.24. Previously, the analysts had been modelling revenues of US$54m and earnings per share (EPS) of US$0.22 in 2021. 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 NETSTREIT

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$26.45, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. Currently, the most bullish analyst values NETSTREIT at US$30.00 per share, while the most bearish prices it at US$23.50. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NETSTREIT's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 70% growth on an annualised basis. This is compared to a historical growth rate of 118% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. Even after the forecast slowdown in growth, it seems obvious that NETSTREIT 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. The lack of change in the price target is puzzling, but with a serious upgrade to this year's earnings expectations, it might be time to take another look at NETSTREIT.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple NETSTREIT analysts - going out to 2023, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

This article by Simply Wall St is general in nature. 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.

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