Analyst Forecasts For SilverCrest Metals Inc. (TSE:SIL) Are Surging Higher

Shareholders in SilverCrest Metals Inc. (TSE:SIL) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. SilverCrest Metals has also found favour with investors, with the stock up a noteworthy 14% to CA$11.20 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 latest consensus from SilverCrest Metals' twin analysts is for revenues of US$265m in 2024, which would reflect a notable 8.0% improvement in sales compared to the last 12 months. Statutory earnings per share are anticipated to crater 35% to US$0.51 in the same period. Before this latest update, the analysts had been forecasting revenues of US$233m and earnings per share (EPS) of US$0.42 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for SilverCrest Metals

With these upgrades, we're not surprised to see that the analysts have lifted their price target 20% to CA$10.82 per share.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that SilverCrest Metals' revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2024 being well below the historical 95% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 14% annually. Factoring in the forecast slowdown in growth, it seems obvious that SilverCrest Metals is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, SilverCrest Metals could be worth investigating further.

Analysts are definitely bullish on SilverCrest Metals, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. For more information, you can click through to our platform to learn more about this and the 2 other flags 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.