Syrah Resources Limited (ASX:SYR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The revenue forecast for this year has experienced a facelift, with the analysts now much more optimistic on its sales pipeline.
After the upgrade, the twin analysts covering Syrah Resources are now predicting revenues of US$37m in 2021. If met, this would reflect a huge 238% improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of US$23m in 2021. It looks like there's been a clear increase in optimism around Syrah Resources, given the chunky increase in revenue forecasts.
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. The analysts are definitely expecting Syrah Resources' growth to accelerate, with the forecast 238% annualised growth to the end of 2021 ranking favourably alongside historical growth of 56% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 1.9% annually. It seems obvious that as part of the brighter growth outlook, Syrah Resources is expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting for revenues to perform better than companies in 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 Syrah Resources.
Still got questions? At least one of Syrah Resources' twin analysts has provided estimates out to 2022, which can be seen for 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. 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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