Shareholders in Cipher Mining Inc. (NASDAQ:CIFR) may be thrilled to learn that the analysts have just delivered a major upgrade to their near-term forecasts. The analysts greatly increased their revenue estimates, suggesting a stark improvement in business fundamentals. Investors have been pretty optimistic on Cipher Mining too, with the stock up 25% to US$5.89 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

After this upgrade, Cipher Mining's nine analysts are now forecasting revenues of US$345m in 2025. This would be a substantial 126% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 79% to US$0.032 per share. However, before this estimates update, the consensus had been expecting revenues of US$316m and US$0.13 per share in losses. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very promising decrease in loss per share in particular.

Check out our latest analysis for Cipher Mining

There was no major change to the consensus price target of US$8.53, perhaps suggesting that the analysts remain concerned about ongoing losses despite the improved earnings and revenue outlook.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cipher Mining's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 92% growth on an annualised basis. That is in line with its 112% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So although Cipher Mining is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting Cipher Mining is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Some investors might be disappointed to see that the price target is unchanged, but we feel that improving fundamentals are usually a positive - assuming these forecasts are met! So Cipher Mining could be a good candidate for more research.

Analysts are definitely bullish on Cipher Mining, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 2 other concerns we've identified, 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 backed by insiders.

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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.