Andean Precious Metals Corp. (TSE:APM) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year’s statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company’s business prospects. Andean Precious Metals has also found favour with investors, with the stock up a notable 10% to CA$7.56 over the past week. Could this upgrade be enough to drive the stock even higher?
After the upgrade, the dual analysts covering Andean Precious Metals are now predicting revenues of US$587m in 2026. If met, this would reflect a substantial 63% improvement in sales compared to the last 12 months. Before the latest update, the analysts were foreseeing US$533m of revenue in 2026. The consensus has definitely become more optimistic, showing a substantial gain in revenue forecasts.
See our latest analysis for Andean Precious Metals
We’d point out that there was no major changes to their price target of US$10.82, suggesting the latest estimates were not enough to shift their view on the value of the business. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Andean Precious Metals, with the most bullish analyst valuing it at US$12.93 and the most bearish at US$9.42 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 Andean Precious Metals’ growth to accelerate, with the forecast 63% annualised growth to the end of 2026 ranking favourably alongside historical growth of 20% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 17% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Andean Precious Metals to grow faster than the wider industry.
The highlight for us was that analysts increased their revenue forecasts for Andean Precious Metals this year. They’re also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to this year’s forecasts, it might be time to take another look at Andean Precious Metals.
