Analysts' Revenue Estimates For Pan American Silver Corp. (TSE:PAAS) Are Surging Higher

Pan American Silver Corp. (TSE:PAAS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

After this upgrade, Pan American Silver's four analysts are now forecasting revenues of US$2.2b in 2023. This would be a huge 41% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$1.8b of revenue in 2023. It looks like there's been a clear increase in optimism around Pan American Silver, given the chunky increase in revenue forecasts.

View our latest analysis for Pan American Silver

We'd point out that there was no major changes to their price target of US$20.96, suggesting the latest estimates were not enough to shift their view on the value of 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. The analysts are definitely expecting Pan American Silver's growth to accelerate, with the forecast 31% annualised growth to the end of 2023 ranking favourably alongside historical growth of 17% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Pan American Silver is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Pan American Silver next year. 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 Pan American Silver.

Unanswered questions? We have analyst estimates for Pan American Silver going out to 2025, 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.