Growth Investors: Industry Analysts Just Upgraded Their Orla Mining Ltd. (TSE:OLA) Revenue Forecasts By 30%

Celebrations may be in order for Orla Mining Ltd. (TSE:OLA) 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.

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Following the upgrade, the latest consensus from Orla Mining's five analysts is for revenues of US$939m in 2025, which would reflect a substantial 125% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to soar 8,106% to US$0.42. Before this latest update, the analysts had been forecasting revenues of US$722m and earnings per share (EPS) of US$0.30 in 2025. 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.

View our latest analysis for Orla Mining

Although the analysts have upgraded their earnings estimates, there was no change to the consensus price target of US$11.90, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Orla Mining analyst has a price target of US$13.63 per share, while the most pessimistic values it at US$10.71. This is a very narrow spread of estimates, implying either that Orla Mining is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 Orla Mining's rate of growth is expected to accelerate meaningfully, with the forecast 195% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 60% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 14% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Orla Mining is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Orla Mining.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Orla Mining analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Orla Mining Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.