One Mountain Province Diamonds Inc. (TSE:MPVD) Analyst Just Lifted Their Revenue Forecasts By A Captivating 27%

Mountain Province Diamonds Inc. (TSE:MPVD) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year's forecasts. The analyst has sharply increased their revenue numbers, with a view that Mountain Province Diamonds will make substantially more sales than they'd previously expected. Investors have been pretty optimistic on Mountain Province Diamonds too, with the stock up 19% to CA$0.76 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the most recent consensus for Mountain Province Diamonds from its solo analyst is for revenues of CA$380m in 2022 which, if met, would be an okay 5.1% increase on its sales over the past 12 months. Prior to the latest estimates, the analyst was forecasting revenues of CA$300m in 2022. The consensus has definitely become more optimistic, showing a chunky increase in revenue forecasts.

See our latest analysis for Mountain Province Diamonds

Additionally, the consensus price target for Mountain Province Diamonds increased 51% to CA$1.45, showing a clear increase in optimism from the analyst involved.

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. We would highlight that Mountain Province Diamonds' revenue growth is expected to slow, with the forecast 5.1% annualised growth rate until the end of 2022 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Mountain Province Diamonds.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Mountain Province Diamonds this year. They're also anticipating slower revenue growth than the wider market. There was also a nice increase in the price target, with the analyst apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Mountain Province Diamonds.

The covering analyst is clearly in love with Mountain Province Diamonds at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as a weak balance sheet. You can learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

You can also see our analysis of Mountain Province Diamonds' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.