Brokers Are Upgrading Their Views On Shandong Gold Mining Co., Ltd. (SHSE:600547) With These New Forecasts

Shareholders in Shandong Gold Mining Co., Ltd. (SHSE:600547) 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. Shandong Gold Mining has also found favour with investors, with the stock up an impressive 14% to CN¥29.07 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After the upgrade, the twelve analysts covering Shandong Gold Mining are now predicting revenues of CN¥69b in 2024. If met, this would reflect a solid 17% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to leap 107% to CN¥0.86. Prior to this update, the analysts had been forecasting revenues of CN¥62b and earnings per share (EPS) of CN¥0.64 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 Shandong Gold Mining

With these upgrades, we're not surprised to see that the analysts have lifted their price target 15% to CN¥28.26 per share.

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. For example, we noticed that Shandong Gold Mining's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 17% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 5.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 10% per year. So it looks like Shandong Gold Mining is expected to grow faster than its competitors, at least for a while.

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, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Shandong Gold Mining could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Shandong Gold Mining going out to 2026, and you can see them free on our platform here..

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies 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.