The future is not bright the future is not Orange 🍊4 Jul 2023 19:29
Analysts Are More Bearish On Bushveld Minerals Limited and delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Revenue and earnings per share (EPS) forecasts were both revised downwards, with analysts seeing grey clouds on the horizon. Surprisingly the share price has been buoyant, rising 18% to UK£0.03 in the past 7 days. Whether the downgrade will have a negative impact on demand for shares is yet to be seen. Following the downgrade, the latest consensus from Bushveld Minerals' dual analysts is for revenues of US$163m in 2023, which would reflect a notable 9.8% improvement in sales compared to the last 12 months. The loss per share is anticipated to greatly reduce in the near future, narrowing 68% to US$0.0098. Yet before this consensus update, the analysts had been forecasting revenues of US$192m and losses of US$0.0051 per share in 2023. So there's been quite a change-up of views after the recent consensus updates, with the analysts making a serious cut to their revenue forecasts while also expecting losses per share to increase. The most important thing to take away is that analysts increased their loss per share estimates for this year. Unfortunately, they also downgraded their revenue estimates, and our data indicates sales are expected to outperform the wider market. Even so, earnings per share are more important to the intrinsic value of the business. After a cut like that, investors could be forgiven for thinking analysts are a lot more bearish on Bushveld Minerals, and a few readers might choose to steer clear of the stock.
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