Celebrations may be in order for SilverCrest Metals Inc. (TSE:SIL) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Investors have been pretty optimistic on SilverCrest Metals too, with the stock up 16% to CA$8.84 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.

Following the upgrade, the most recent consensus for SilverCrest Metals from its two analysts is for revenues of US$265m in 2023 which, if met, would be a major increase on its sales over the past 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$185m in 2023. The consensus has definitely become more optimistic, showing a chunky increase in revenue forecasts.

Check out our latest analysis for SilverCrest Metals

There was no particular change to the consensus price target of CA$13.17, with SilverCrest Metals' latest outlook seemingly not enough to result in a change of valuation. 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. There are some variant perceptions on SilverCrest Metals, with the most bullish analyst valuing it at CA$14.00 and the most bearish at CA$11.25 per share. With such a narrow range of valuations, analysts apparently share similar views on what they think the business is worth.

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. It's clear from the latest estimates that SilverCrest Metals' rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 108% 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 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SilverCrest Metals to grow faster than the wider industry.

The Bottom Line

The highlight for us was that analysts increased their revenue forecasts for SilverCrest Metals this year. They're also forecasting more rapid revenue growth than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at SilverCrest Metals.

Of course, there's always more to the story. At least one of SilverCrest Metals' two analysts has provided estimates out to 2025, which can be seen 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.

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.

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