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Analyst Forecasts For Calibre Mining Corp. (TSE:CXB) Are Surging Higher

·3-min read

Calibre Mining Corp. (TSE:CXB) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Calibre Mining will make substantially more sales than they'd previously expected. Calibre Mining has also found favour with investors, with the stock up a worthy 17% to CA$1.41 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the five analysts covering Calibre Mining are now predicting revenues of US$418m in 2022. If met, this would reflect a substantial 31% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$403m in 2022. So there's been a pretty clear uptick in analyst sentiment after this consensus update, given the modest lift to next year's revenue forecasts.

View our latest analysis for Calibre Mining

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earnings-and-revenue-growth

We'd point out that there was no major changes to their price target of CA$2.53, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Calibre Mining, with the most bullish analyst valuing it at CA$2.55 and the most bearish at CA$2.25 per share. 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.

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 pretty clear that there is an expectation that Calibre Mining's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 24% growth on an annualised basis. This is compared to a historical growth rate of 82% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.7% annually. Even after the forecast slowdown in growth, it seems obvious that Calibre Mining is also expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Calibre Mining next year. The analysts also expect revenues to grow faster 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 Calibre Mining could be a good candidate for more research.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 2 potential concern with Calibre Mining, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 1 other concern we've identified .

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.