Analysts Just Shipped A Meaningful Upgrade To Their Jabil Inc. (NYSE:JBL) Estimates

Jabil Inc. (NYSE:JBL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's 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.

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After this upgrade, Jabil's eight analysts are now forecasting revenues of US$43b in 2027. This would be a sizeable 27% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 67% to US$13.61. Previously, the analysts had been modelling revenues of US$38b and earnings per share (EPS) of US$11.39 in 2027. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for Jabil

With these upgrades, we're not surprised to see that the analysts have lifted their price target 27% to US$441 per share.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that Jabil is forecast to grow faster in the future than it has in the past, with revenues expected to display 21% annualised growth until the end of 2027. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 14% per year. Not only are Jabil's revenues expected to improve, it seems that the analysts are also expecting it 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 next year, expecting improving business conditions. Fortunately, analysts 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, Jabil could be worth investigating further.

Using these estimates as a starting point, we've run a discounted cash flow calculation (DCF) on Jabil that suggests the company could be somewhat undervalued. You can learn more about our valuation methodology on our platform here.

We also provide an overview of the Jabil Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.