Yahoo Finance Analysts Are Betting On Sigma Lithium Corporation (NASDAQ:SGML) With A Big Upgrade This Week
Sigma Lithium Corporation (NASDAQ:SGML) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. The analysts have sharply increased their revenue numbers, with a view that Sigma Lithium will make substantially more sales than they'd previously expected. Investor sentiment seems to be improving too, with the share price up 6.7% to US$13.93 over the past 7 days. Whether the upgrade is enough to drive the stock price higher is yet to be seen, however.
After this upgrade, Sigma Lithium's three analysts are now forecasting revenues of CA$1.2b in 2024. This would be a sizeable improvement in sales compared to the last 12 months. Prior to the latest estimates, the analysts were forecasting revenues of CA$1.1b in 2024. The consensus has definitely become more optimistic, showing a nice gain to revenue forecasts.
View our latest analysis for Sigma Lithium
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. It's clear from the latest estimates that Sigma Lithium's rate of growth is expected to accelerate meaningfully, with the forecast 5x annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 109% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Sigma Lithium is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for next year. They're also forecasting more rapid revenue growth than the wider market. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Sigma Lithium.
Analysts are clearly in love with Sigma Lithium at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. For more information, you can click through to our platform to learn more about this and the 4 other concerns we've identified .
Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.
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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.
