Industry Analysts Just Made A Meaningful Upgrade To Their Anglo Pacific Group plc (LON:APF) Revenue Forecasts
Shareholders in Anglo Pacific Group plc (LON:APF) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects. Investor sentiment seems to be improving too, with the share price up 5.6% to UK£1.54 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 most recent consensus for Anglo Pacific Group from its four analysts is for revenues of US$188m in 2022 which, if met, would be a substantial 121% increase on its sales over the past 12 months. Per-share earnings are expected to bounce 177% to US$0.49. Prior to this update, the analysts had been forecasting revenues of US$168m and earnings per share (EPS) of US$0.45 in 2022. Sentiment certainly seems to have improved in recent times, with a decent improvement in revenue and a small lift in earnings per share estimates.
View our latest analysis for Anglo Pacific Group
With these upgrades, we're not surprised to see that the analysts have lifted their price target 11% to UK£2.82 per share. 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. There are some variant perceptions on Anglo Pacific Group, with the most bullish analyst valuing it at UK£4.00 and the most bearish at UK£2.15 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
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 Anglo Pacific Group's growth to accelerate, with the forecast 121% annualised growth to the end of 2022 ranking favourably alongside historical growth of 8.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue shrink 3.6% per year. It seems obvious that as part of the brighter growth outlook, Anglo Pacific Group is expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. Fortunately, they also upgraded their revenue estimates, and our data indicates sales are expected 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.
These earnings upgrades look like a sterling endorsement, but before diving in - you should know that we've spotted 3 potential risk with Anglo Pacific Group, including concerns around earnings quality. You can learn more, and discover the 1 other risk we've identified, 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.
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