One thing we could say about the analysts on 29Metals Limited (ASX:29M) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

Following the downgrade, the current consensus from 29Metals' nine analysts is for revenues of AU$580m in 2025 which - if met - would reflect a huge 27% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing AU$576m of revenue in 2025. From what we can see, it looks like 29Metals is performing in line with analyst expectations. The the analysts we track have all updated their numbers, and there were no major changes to their forecasts for this year.

See our latest analysis for 29Metals

There was no particular change to the consensus price target of US$0.15, with 29Metals' latest outlook seemingly not enough to result in a change of valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values 29Metals at US$0.20 per share, while the most bearish prices it at US$0.086. This is a fairly broad spread of estimates, suggesting that the analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the 29Metals' past performance and to peers in the same industry. One thing stands out from these estimates, which is that 29Metals is forecast to grow faster in the future than it has in the past, with revenues expected to display 27% annualised growth until the end of 2025. If achieved, this would be a much better result than the 24% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.5% per year. So it looks like 29Metals is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The clear take away from these updates is that analysts made no change to their revenue estimates for this year, with the business apparently performing in line with their models. They're also forecasting more rapid revenue growth than the wider market. Given the stark change in sentiment, we'd understand if investors became more cautious on 29Metals after today.

Still got questions? We have estimates for 29Metals from its nine analysts out until 2027, 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 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.