Bullish: Analysts Just Made A Significant Upgrade To Their Evolution Mining Limited (ASX:EVN) Forecasts – Simply Wall St

Evolution Mining Limited (ASX:EVN) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from Evolution Mining's 16 analysts is for revenues of AU$2.1b in 2022, which would reflect a decent 13% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 23% to AU$0.23. Before this latest update, the analysts had been forecasting revenues of AU$1.9b and earnings per share (EPS) of AU$0.20 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for Evolution Mining

It will come as no surprise to learn that the analysts have increased their price target for Evolution Mining 5.9% to AU$4.37 on the back of these upgrades. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Evolution Mining at AU$5.60 per share, while the most bearish prices it at AU$3.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Evolution Mining shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Evolution Mining's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.3% annually. So it's clear with the acceleration in growth, Evolution Mining is expected to grow meaningfully faster than the wider industry.

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. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Evolution Mining could be worth investigating further.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Evolution Mining analysts - going out to 2024, 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.

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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Bullish: Analysts Just Made A Significant Upgrade To Their Evolution Mining Limited (ASX:EVN) Forecasts - Simply Wall St

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