Stock Analysis

News Flash: Analysts Just Made An Incredible Upgrade To Their Almonty Industries Inc. (TSE:AII) Forecasts

TSX:AII
Source: Shutterstock

Celebrations may be in order for Almonty Industries Inc. (TSE:AII) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Almonty Industries will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Almonty Industries from its three analysts is for revenues of CA$57m in 2023 which, if met, would be a sizeable 124% increase on its sales over the past 12 months. Yet prior to the latest estimates, the analysts had been forecasting revenues of CA$39m and losses of CA$0.023 per share in 2023. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Almonty Industries

earnings-and-revenue-growth
TSX:AII Earnings and Revenue Growth May 14th 2023

We'd point out that there was no major changes to their price target of CA$1.66, suggesting the latest estimates were not enough to shift their view on the value of the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Almonty Industries, with the most bullish analyst valuing it at CA$1.70 and the most bearish at CA$1.59 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Almonty Industries is forecast to grow faster in the future than it has in the past, with revenues expected to display 124% annualised growth until the end of 2023. If achieved, this would be a much better result than the 26% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. Not only are Almonty Industries' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the consensus now expects Almonty Industries to become profitable this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Almonty Industries.

Analysts are clearly in love with Almonty Industries at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a short cash runway. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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

New: Manage All Your Stock Portfolios in One Place

We've created the ultimate portfolio companion for stock investors, and it's free.

• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks

Try a Demo Portfolio for Free

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.