News Flash: Analysts Just Made A Captivating Upgrade To Their Anglo Pacific Group plc (LON:APF) Forecasts

Anglo Pacific Group plc (LON:APF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 5.2% to UK£1.58 over the past 7 days. 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 Anglo Pacific Group's four analysts is for revenues of US$154m in 2022, which would reflect a substantial 81% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$136m in 2022. The consensus has definitely become more optimistic, showing a nice increase in revenue forecasts.

Check out our latest analysis for Anglo Pacific Group

The consensus price target rose 6.8% to UK£2.54, with the analysts clearly more optimistic about Anglo Pacific Group's prospects following this update. 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. The most optimistic Anglo Pacific Group analyst has a price target of UK£3.00 per share, while the most pessimistic values it at UK£1.66. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that Anglo Pacific Group's rate of growth is expected to accelerate meaningfully, with the forecast 81% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 8.0% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 3.3% annually. So it's clear with the acceleration in growth, Anglo Pacific Group is expected to grow meaningfully faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Anglo Pacific Group this year. The analysts also expect revenues to perform better than the wider market. There was also an increase in the price target, suggesting that there is more optimism baked into the forecasts than there was previously. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Anglo Pacific Group.

Analysts are definitely bullish on Anglo Pacific Group, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including recent substantial insider selling. You can learn more, and discover the 2 other concerns we've identified, 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 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.