News Flash: Analysts Just Made A Notable Upgrade To Their Sylvania Platinum Limited (LON:SLP) Forecasts
Shareholders in Sylvania Platinum Limited (LON:SLP) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. Sylvania Platinum has also found favour with investors, with the stock up a noteworthy 11% to UK£0.74 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.
Following the latest upgrade, the dual analysts covering Sylvania Platinum provided consensus estimates of US$147m revenue in 2024, which would reflect an uneasy 9.4% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to descend 13% to US$0.21 in the same period. Before this latest update, the analysts had been forecasting revenues of US$129m and earnings per share (EPS) of US$0.16 in 2024. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.
See our latest analysis for Sylvania Platinum
Despite these upgrades, the analysts have not made any major changes to their price target of AU$2.39, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 9.4% annualised revenue decline to the end of 2024. That is a notable change from historical growth of 25% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 0.8% per year. It's pretty clear that Sylvania Platinum's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, they also upgraded their revenue estimates, and are forecasting revenues to grow slower than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Sylvania Platinum could be a good candidate for more research.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Sylvania Platinum going out as far as 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.
