Yahoo Finance News Flash: Analysts Just Made An Upgrade To Their Taseko Mines Limited (TSE:TKO) Forecasts
Shareholders in Taseko Mines Limited (TSE:TKO) 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. Taseko Mines has also found favour with investors, with the stock up a noteworthy 12% to CA$2.40 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
Following the upgrade, the current consensus from Taseko Mines' seven analysts is for revenues of CA$492m in 2023 which - if met - would reflect a substantial 26% increase on its sales over the past 12 months. Losses are expected to turn into profits real soon, with the analysts forecasting CA$0.025 in per-share earnings. Prior to this update, the analysts had been forecasting revenues of CA$456m and earnings per share (EPS) of CA$0.03 in 2023. So it's pretty clear the analysts have mixed opinions on Taseko Mines even after this update; although they upped their revenue numbers, it came at the cost of a real cut to per-share earnings expectations.
View our latest analysis for Taseko Mines
The consensus price target was unchanged at CA$2.94, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. Currently, the most bullish analyst values Taseko Mines at CA$3.70 per share, while the most bearish prices it at CA$2.50. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Taseko Mines' growth to accelerate, with the forecast 26% annualised growth to the end of 2023 ranking favourably alongside historical growth of 5.0% 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 13% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Taseko Mines is expected to grow much faster than its industry.
The Bottom Line
The biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Taseko Mines. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Taseko Mines.
Still, the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Taseko Mines going out to 2025, and you can see them 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.
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