Yahoo Finance Broker Revenue Forecasts For 5N Plus Inc. (TSE:VNP) Are Surging Higher
Shareholders in 5N Plus Inc. (TSE:VNP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline. Investor sentiment seems to be improving too, with the share price up 4.7% to CA$4.66 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
Following the upgrade, the latest consensus from 5N Plus' five analysts is for revenues of US$209m in 2021, which would reflect a decent 18% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$169m of revenue in 2021. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.
View our latest analysis for 5N Plus
The consensus price target rose 5.3% to US$4.57, with the analysts clearly more optimistic about 5N Plus' prospects following this update. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic 5N Plus analyst has a price target of US$6.23 per share, while the most pessimistic values it at US$5.48. Still, with such a tight range of estimates, it suggests the analysts have a pretty good idea of what they think the company is worth.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that 5N Plus' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 18% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 8.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.9% per year. Not only are 5N Plus' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The highlight for us was that analysts increased their revenue forecasts for 5N Plus this year. They're also forecasting more rapid revenue growth 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 5N Plus.
Unsatisfied? At least one of 5N Plus' five analysts has provided estimates out to 2023, which can be seen for free on our platform here.
We also provide an overview of the 5N Plus Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
