News Flash: Analysts Just Made A Notable Upgrade To Their Equinox Gold Corp. (TSE:EQX) Forecasts

Celebrations may be in order for Equinox Gold Corp. (TSE:EQX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the latest consensus from Equinox Gold's six analysts is for revenues of US$1.7b in 2024, which would reflect a sizeable 52% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.4b in 2024. The consensus has definitely become more optimistic, showing a chunky increase in revenue forecasts.

Check out our latest analysis for Equinox Gold

The consensus price target rose 10% to US$7.18, with the analysts clearly more optimistic about Equinox Gold's prospects following this update. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Equinox Gold at US$8.76 per share, while the most bearish prices it at US$4.93. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Equinox Gold's rate of growth is expected to accelerate meaningfully, with the forecast 52% annualised revenue growth to the end of 2024 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 13% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Equinox Gold to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Equinox Gold this year. The analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Equinox Gold.

Looking to learn more? We have analyst estimates for Equinox Gold going out to 2026, 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 upgrading their estimates. So you may also wish to search this free list of stocks 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.