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Need To Know: Analysts Are Much More Bullish On Agnico Eagle Mines Limited (NYSE:AEM) Revenues

·3 min read

Celebrations may be in order for Agnico Eagle Mines Limited (NYSE:AEM) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for next year has experienced a facelift, with analysts now much more optimistic on its sales pipeline.

After the upgrade, the ten analysts covering Agnico Eagle Mines are now predicting revenues of US$6.1b in 2022. If met, this would reflect a major 61% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$4.5b in 2022. It looks like there's been a clear increase in optimism around Agnico Eagle Mines, given the great increase in revenue forecasts.

View our latest analysis for Agnico Eagle Mines

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

We'd point out that there was no major changes to their price target of US$69.20, suggesting the latest estimates were not enough to shift their view on the value of the business. 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. The most optimistic Agnico Eagle Mines analyst has a price target of US$79.00 per share, while the most pessimistic values it at US$60.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Agnico Eagle Mines is an easy business to forecast or the underlying assumptions are obvious.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Agnico Eagle Mines' past performance and to peers in the same industry. It's clear from the latest estimates that Agnico Eagle Mines' rate of growth is expected to accelerate meaningfully, with the forecast 46% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 12% 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 1.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Agnico Eagle Mines to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for Agnico Eagle Mines next year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Agnico Eagle Mines.

Analysts are clearly in love with Agnico Eagle Mines at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as major dilution from new stock issuance in the past year. For more information, you can click through to our platform to learn more about this and the 1 other warning sign 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.