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New Forecasts: Here's What Analysts Think The Future Holds For Capricorn Metals Ltd (ASX:CMM)

Simply Wall St
·3 min read

Celebrations may be in order for Capricorn Metals Ltd (ASX:CMM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.

Following the upgrade, the current forecast from Capricorn Metals' four analysts is for revenues of AU$71m in 2021, which would reflect a major improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of AU$53m in 2021. It looks like there's been a clear increase in optimism around Capricorn Metals, given the very substantial lift in revenue forecasts.

See our latest analysis for Capricorn Metals

earnings-and-revenue-growth
earnings-and-revenue-growth

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Capricorn Metals is forecast to grow faster in the future than it has in the past, with revenues expected to grow manyfold. If achieved, this would be a much better result than the 16% annual decline over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 0.5% next year. Not only are Capricorn Metals' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. The analysts also expect revenues to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Capricorn Metals.

Analysts are definitely bullish on Capricorn Metals, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 2 other risks we've identified .

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.

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@simplywallst.com.