One Jubilee Metals Group PLC (LON:JLP) Analyst Just Slashed Their Estimates By A Considerable 31%

Market forces rained on the parade of Jubilee Metals Group PLC (LON:JLP) shareholders today, when the covering analyst downgraded their forecasts for this year. Revenue estimates were cut sharply as the analyst signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

Following the downgrade, the latest consensus from Jubilee Metals Group's solitary analyst is for revenues of UK£161m in 2023, which would reflect a notable 15% improvement in sales compared to the last 12 months. Before the latest update, the analyst was foreseeing UK£234m of revenue in 2023. The consensus view seems to have become more pessimistic on Jubilee Metals Group, noting the pretty serious reduction to revenue estimates in this update.

See our latest analysis for Jubilee Metals Group

Notably, the analyst has cut their price target 15% to UK£0.17, suggesting concerns around Jubilee Metals Group's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Jubilee Metals Group's revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2023 being well below the historical 46% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 1.3% per year. So it's clear that despite the slowdown in growth, Jubilee Metals Group is still expected to grow meaningfully faster than the wider industry.

The Bottom Line

The clear low-light was that the analyst slashing their revenue forecasts for Jubilee Metals Group this year. The analyst also expects revenues to perform better than the wider market. The consensus price target fell measurably, with the analyst seemingly not reassured by recent business developments, leading to a lower estimate of Jubilee Metals Group's future valuation. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Jubilee Metals Group after today.

Thirsting for more data? We have forecasts for Jubilee Metals Group from one covering analyst, and you can see them free on our platform here.

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