Need To Know: The Consensus Just Cut Its Wesdome Gold Mines Ltd. (TSE:WDO) Estimates For 2023

Market forces rained on the parade of Wesdome Gold Mines Ltd. (TSE:WDO) shareholders today, when the analysts downgraded their forecasts for next year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the most recent consensus for Wesdome Gold Mines from its six analysts is for revenues of CA$318m in 2023 which, if met, would be a notable 15% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing CA$383m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Wesdome Gold Mines, given the substantial drop in revenue estimates.

See our latest analysis for Wesdome Gold Mines

The consensus price target fell 9.9% to CA$10.31, with the analysts clearly less optimistic about Wesdome Gold Mines' valuation following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Wesdome Gold Mines at CA$15.00 per share, while the most bearish prices it at CA$6.40. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Wesdome Gold Mines' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2023 being well below the historical 23% p.a. growth over the last five years. Compare this to the 1276 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. So it's pretty clear that, while Wesdome Gold Mines' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Wesdome Gold Mines next year. Analysts also expect revenues to grow approximately in line with the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Given the stark change in sentiment, we'd understand if investors became more cautious on Wesdome Gold Mines after today.

But wait - there's more! At least one of Wesdome Gold Mines' six 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 downgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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