Industry Analysts Just Made A Substantial Upgrade To Their TransAlta Corporation (TSE:TA) Revenue Forecasts

Celebrations may be in order for TransAlta Corporation (TSE:TA) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

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Following the latest upgrade, the current consensus, from the six analysts covering TransAlta, is for revenues of CA$2.2b in 2026, which would reflect a noticeable 3.8% reduction in TransAlta's sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$2.0b in 2026. It looks like there's been a clear increase in optimism around TransAlta, given the decent improvement in revenue forecasts.

See our latest analysis for TransAlta

There was no particular change to the consensus price target of CA$23.82, with TransAlta's latest outlook seemingly not enough to result in a change of valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TransAlta's past performance and to peers in the same industry. Over the past five years, revenues have declined around 2.5% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 7.4% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 5.8% per year. So while a broad number of companies are forecast to grow, unfortunately TransAlta is expected to see its sales affected worse than other companies in the industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for TransAlta this year. They're also anticipating slower revenue growth than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at TransAlta.

Better yet, TransAlta is expected to break-even soon - within the next few years - according to analyst forecasts, which would be a momentous event for shareholders. You can learn more about these forecasts, for free on our platform here.

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