Stock Analysis

Growth Investors: Industry Analysts Just Upgraded Their SilverCrest Metals Inc. (TSE:SIL) Revenue Forecasts By 43%

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SilverCrest Metals Inc. (TSE:SIL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. The market may be pricing in some blue sky too, with the share price gaining 16% to CA$8.84 in the last 7 days. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the most recent consensus for SilverCrest Metals from its twin analysts is for revenues of US$265m in 2023 which, if met, would be a huge increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$185m of revenue in 2023. It looks like there's been a clear increase in optimism around SilverCrest Metals, given the very substantial lift in revenue forecasts.

Check out our latest analysis for SilverCrest Metals

TSX:SIL Earnings and Revenue Growth March 18th 2023

We'd point out that there was no major changes to their price target of CA$13.17, suggesting the latest estimates were not enough to shift their view on the value of the business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values SilverCrest Metals at CA$14.00 per share, while the most bearish prices it at CA$11.25. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.

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. It's clear from the latest estimates that SilverCrest Metals' rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 108% p.a. 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SilverCrest Metals to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for SilverCrest Metals this year. The analysts also expect revenues 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 SilverCrest Metals.

Need some more information? At least one of SilverCrest Metals' twin analysts has provided estimates out to 2025, which can be seen for 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.

Valuation is complex, but we're helping make it simple.

Find out whether SilverCrest Metals is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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