Yahoo Finance Analyst Forecasts Just Became More Bearish On Kelt Exploration Ltd. (TSE:KEL)
The analysts covering Kelt Exploration Ltd. (TSE:KEL) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.
After this downgrade, Kelt Exploration's dual analysts are now forecasting revenues of CA$595m in 2024. This would be a sizeable 40% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$722m in 2024. The consensus view seems to have become more pessimistic on Kelt Exploration, noting the substantial drop in revenue estimates in this update.
View our latest analysis for Kelt Exploration
We'd point out that there was no major changes to their price target of CA$8.60, suggesting the latest estimates were not enough to shift their view on the value of the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kelt Exploration's past performance and to peers in the same industry. It's clear from the latest estimates that Kelt Exploration's rate of growth is expected to accelerate meaningfully, with the forecast 56% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kelt Exploration to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on Kelt Exploration after today.
Of course, there's always more to the story. At least one of Kelt Exploration's dual analysts has provided estimates out to 2025, which can be seen for 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.
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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.
