This Almonty Industries Inc. (TSE:AII) Analyst Is Way More Bearish Than They Used To Be

One thing we could say about the covering analyst on Almonty Industries Inc. (TSE:AII) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analyst has soured majorly on the business.

After the downgrade, the solitary analyst covering Almonty Industries is now predicting revenues of CA$29m in 2023. If met, this would reflect a notable 20% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 36% to CA$0.04 per share. However, before this estimates update, the consensus had been expecting revenues of CA$34m and CA$0.03 per share in losses. So there's been quite a change-up of views after the recent consensus updates, with the analyst making a serious cut to their revenue forecasts while also expecting losses per share to increase.

See our latest analysis for Almonty Industries

The consensus price target fell 5.6% to CA$1.59, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. 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 20% annualised growth until the end of 2023. If achieved, this would be a much better result than the 27% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 14% annually. So it looks like Almonty Industries is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for this year. Unfortunately, the analyst also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Almonty Industries going out as far as 2025, and you can see them 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.