Time To Worry? Analysts Just Downgraded Their Bear Creek Mining Corporation (CVE:BCM) Outlook
The latest analyst coverage could presage a bad day for Bear Creek Mining Corporation (CVE:BCM), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. Revenue estimates were cut sharply as analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.
Following the downgrade, the latest consensus from Bear Creek Mining's three analysts is for revenues of US$100m in 2023, which would reflect an okay 5.1% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$113m of revenue in 2023. It looks like forecasts have become a fair bit less optimistic on Bear Creek Mining, given the measurable cut to revenue estimates.
See our latest analysis for Bear Creek Mining
Notably, the analysts have cut their price target 7.1% to CA$1.30, suggesting concerns around Bear Creek Mining's valuation.
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. We would highlight that Bear Creek Mining's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2023 being well below the historical 96% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bear Creek Mining.
The Bottom Line
The most important thing to take away is that analysts cut their revenue estimates for this year. They also expect company revenue to perform worse than the wider market. Furthermore, there was a cut to the price target, suggesting that the latest news has led to more pessimism about the intrinsic value of the business. Overall, given the drastic downgrade to this year's forecasts, we'd be feeling a little more wary of Bear Creek Mining going forwards.
Want to learn more? We have estimates for Bear Creek Mining from its three analysts out until 2025, and you can see them 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 downgrading 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.
