Analyst Forecasts For Aya Gold & Silver Inc. (TSE:AYA) Are Surging Higher

Aya Gold & Silver Inc. (TSE:AYA) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 11% to CA$15.42 in the last 7 days. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

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After this upgrade, Aya Gold & Silver's seven analysts are now forecasting revenues of US$258m in 2026. This would be a major 89% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 3,470% to US$0.62. Before this latest update, the analysts had been forecasting revenues of US$229m and earnings per share (EPS) of US$0.56 in 2026. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

See our latest analysis for Aya Gold & Silver

Despite these upgrades, the analysts have not made any major changes to their price target of US$16.49, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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 Aya Gold & Silver, with the most bullish analyst valuing it at US$23.56 and the most bearish at US$12.14 per share. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

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. It's clear from the latest estimates that Aya Gold & Silver's rate of growth is expected to accelerate meaningfully, with the forecast 67% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 31% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Aya Gold & Silver is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Aya Gold & Silver could be a good candidate for more research.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Aya Gold & Silver analysts - going out to 2027, and you can see them free on our platform here.

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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.