Yahoo Finance Capricorn Metals Ltd (ASX:CMM) Analysts Are Pretty Bullish On The Stock After Recent Results
It's been a good week for Capricorn Metals Ltd (ASX:CMM) shareholders, because the company has just released its latest interim results, and the shares gained 7.7% to AU$4.74. Revenues of AU$182m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.14, missing estimates by 3.5%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Capricorn Metals
Following the latest results, Capricorn Metals' six analysts are now forecasting revenues of AU$373.4m in 2024. This would be an okay 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 511% to AU$0.30. Before this earnings report, the analysts had been forecasting revenues of AU$366.3m and earnings per share (EPS) of AU$0.29 in 2024. So the consensus seems to have become somewhat more optimistic on Capricorn Metals' earnings potential following these results.
The consensus price target rose 5.4% to AU$5.08, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Capricorn Metals at AU$6.00 per share, while the most bearish prices it at AU$4.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Capricorn Metals is an easy business to forecast or the the analysts are all using similar assumptions.
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. We would highlight that Capricorn Metals' revenue growth is expected to slow, with the forecast 9.4% annualised growth rate until the end of 2024 being well below the historical 70% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 0.04% per year. So it's pretty clear that, while Capricorn Metals' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Capricorn Metals following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Capricorn Metals going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with Capricorn Metals .
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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.
