Just In: One Analyst Has Become A Lot More Bullish On Sylvania Platinum Limited's (LON:SLP) Earnings

Celebrations may be in order for Sylvania Platinum Limited (LON:SLP) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. The analyst greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals.

Following the upgrade, the current consensus from Sylvania Platinum's lone analyst is for revenues of US$192m in 2021 which - if met - would reflect a major 68% increase on its sales over the past 12 months. Statutory earnings per share are presumed to shoot up 147% to US$0.36. Prior to this update, the analyst had been forecasting revenues of US$145m and earnings per share (EPS) of US$0.25 in 2021. There has definitely been an improvement in perception recently, with the analyst substantially increasing both their earnings and revenue estimates.

Check out our latest analysis for Sylvania Platinum

With these upgrades, we're not surprised to see that the analyst has lifted their price target 43% to AU$3.55 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. The analyst is definitely expecting Sylvania Platinum's growth to accelerate, with the forecast 68% growth ranking favourably alongside historical growth of 21% 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 3.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sylvania Platinum is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Sylvania Platinum could be worth investigating further.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2023, 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.

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