What You Need To Know About The Mincor Resources NL (ASX:MCR) Analyst Downgrade Today

The analysts covering Mincor Resources NL (ASX:MCR) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

After the downgrade, the six analysts covering Mincor Resources are now predicting revenues of AU$119m in 2023. If met, this would reflect a sizeable 129% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$136m in 2023. It looks like forecasts have become a fair bit less optimistic on Mincor Resources, given the measurable cut to revenue estimates.

View our latest analysis for Mincor Resources

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 clear from the latest estimates that Mincor Resources' rate of growth is expected to accelerate meaningfully, with the forecast 4x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 16% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Mincor Resources is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that analysts cut their revenue estimates for this year. Analysts also expect revenues to grow faster than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Mincor Resources after today.

Want to learn more? We have estimates for Mincor Resources from its six analysts out until 2025, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks 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.