What Does The Future Hold For Energy Fuels Inc. (TSE:EFR)? These Analysts Have Been Cutting Their Estimates

The latest analyst coverage could presage a bad day for Energy Fuels Inc. (TSE:EFR), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic. The stock price has risen 5.3% to CA$6.60 over the past week. It will be interesting to see if this downgrade motivates investors to start selling their holdings.

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Following the latest downgrade, the twin analysts covering Energy Fuels provided consensus estimates of US$33m revenue in 2025, which would reflect a sizeable 58% decline on its sales over the past 12 months. Losses are forecast to hold steady at around US$0.22 per share. However, before this estimates update, the consensus had been expecting revenues of US$42m and US$0.21 per share in losses. Ergo, there's been a clear change in sentiment, with the analysts administering a notable cut to this year's revenue estimates, while at the same time increasing their loss per share forecasts.

View our latest analysis for Energy Fuels

There was no major change to the consensus price target of CA$13.50, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

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 sales are expected to reverse, with a forecast 68% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 61% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Energy Fuels is expected to lag the wider industry.

The Bottom Line

The most important thing to note from this downgrade is that the consensus increased its forecast losses this year, suggesting all may not be well at Energy Fuels. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Energy Fuels' revenues are expected to grow slower than the wider market. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Energy Fuels going forwards.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Energy Fuels going out as far as 2027, 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 with high insider ownership.

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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.