New Forecasts: Here's What Analysts Think The Future Holds For Serabi Gold plc (LON:SRB)

Shareholders in Serabi Gold plc (LON:SRB) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance. Investors have been pretty optimistic on Serabi Gold too, with the stock up 26% to UK£1.62 over the past week. Could this upgrade be enough to drive the stock even higher?

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Following the upgrade, the most recent consensus for Serabi Gold from its three analysts is for revenues of US$133m in 2025 which, if met, would be a major 54% increase on its sales over the past 12 months. Statutory earnings per share are presumed to bounce 180% to US$0.73. Before this latest update, the analysts had been forecasting revenues of US$120m and earnings per share (EPS) of US$0.58 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Serabi Gold

It will come as no surprise to learn that the analysts have increased their price target for Serabi Gold 20% to US$2.62 on the back of these upgrades. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Serabi Gold at US$3.05 per share, while the most bearish prices it at US$2.28. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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 analysts are definitely expecting Serabi Gold's growth to accelerate, with the forecast 41% annualised growth to the end of 2025 ranking favourably alongside historical growth of 5.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.1% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Serabi Gold to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for next year. They also upgraded their revenue estimates for next year, and sales are expected to grow faster than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Serabi Gold.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Serabi Gold analysts - going out to 2027, and you can see them 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 with high insider ownership.

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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.