Yahoo Finance Analysts Are Betting On Equinox Gold Corp. (TSE:EQX) With A Big Upgrade This Week
Celebrations may be in order for Equinox Gold Corp. (TSE:EQX) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.
Following the upgrade, the current consensus from Equinox Gold's six analysts is for revenues of US$1.7b in 2024 which - if met - would reflect a sizeable 52% increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$1.4b in 2024. The consensus has definitely become more optimistic, showing a very substantial lift in revenue forecasts.
See our latest analysis for Equinox Gold
The consensus price target rose 10% to US$7.18, with the analysts clearly more optimistic about Equinox Gold's prospects following this update. 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. There are some variant perceptions on Equinox Gold, with the most bullish analyst valuing it at US$8.76 and the most bearish at US$4.93 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Equinox Gold's rate of growth is expected to accelerate meaningfully, with the forecast 52% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 31% p.a. 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Equinox Gold to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for Equinox Gold this year. They're also forecasting more rapid revenue growth 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 Equinox Gold.
Need some more information? At least one of Equinox Gold's six analysts has provided estimates out to 2026, 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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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.
