Industry Analysts Just Made A Sizeable Upgrade To Their Gran Colombia Gold Corp. (TSE:GCM) Revenue Forecasts

Gran Colombia Gold Corp. (TSE:GCM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the latest consensus from Gran Colombia Gold's three analysts is for revenues of US$437m in 2021, which would reflect a decent 11% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$389m in 2021. It looks like there's been a clear increase in optimism around Gran Colombia Gold, given the solid increase in revenue forecasts.

View our latest analysis for Gran Colombia Gold

There was no particular change to the consensus price target of US$9.53, with Gran Colombia Gold's latest outlook seemingly not enough to result in a change of valuation. 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. Currently, the most bullish analyst values Gran Colombia Gold at US$17.36 per share, while the most bearish prices it at US$8.79. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 19% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.4% per year. So it's pretty clear that Gran Colombia Gold is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Gran Colombia Gold.

These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 5 potential warning signs with Gran Colombia Gold, including major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 2 other warning signs 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.

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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.
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