News Flash: Analysts Just Made A Captivating Upgrade To Their Griffin Mining Limited (LON:GFM) Forecasts

Griffin Mining Limited (LON:GFM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Griffin Mining will make substantially more sales than they'd previously expected. The stock price has risen 6.5% to UK£1.64 over the past week, suggesting investors are becoming more optimistic. It will be interesting to see if this latest upgrade is enough to kickstart further buying interest in the stock.

Following the upgrade, the latest consensus from Griffin Mining's two analysts is for revenues of US$165m in 2024, which would reflect a decent 13% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$149m of revenue in 2024. It looks like there's been a clear increase in optimism around Griffin Mining, given the nice increase in revenue forecasts.

Check out our latest analysis for Griffin Mining

Additionally, the consensus price target for Griffin Mining increased 20% to US$2.32, showing a clear increase in optimism from the analysts involved. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Griffin Mining at US$2.48 per share, while the most bearish prices it at US$2.15. This is a very narrow spread of estimates, implying either that Griffin Mining is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Griffin Mining's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% 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 1.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Griffin Mining to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Griffin Mining this year. Analysts also expect revenues to grow faster than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Griffin Mining.

Want to learn more? At least one of Griffin Mining's two analysts has provided estimates out to 2026, which can be seen for 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 backed by insiders.

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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.