Analysts Are Betting On Equinox Gold Corp. (TSE:EQX) With A Big Upgrade This Week
Equinox Gold Corp. (TSE:EQX) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The revenue forecast for this year has experienced a facelift, with analysts now much more optimistic on its sales pipeline. Equinox Gold has also found favour with investors, with the stock up a worthy 29% to CA$16.16 over the past week. It will be interesting to see if today's upgrade is enough to propel the stock even higher.
After this upgrade, Equinox Gold's seven analysts are now forecasting revenues of US$4.0b in 2026. This would be a sizeable 39% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to surge 189% to US$1.22. Prior to this update, the analysts had been forecasting revenues of US$3.0b and earnings per share (EPS) of US$1.22 in 2026. It seems analyst sentiment has certainly become more bullish on revenues, even though they haven't changed their view on earnings per share.
Check out our latest analysis for Equinox Gold
Even though revenue forecasts increased, there was no change to the consensus price target of US$17.21, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Equinox Gold at US$25.03 per share, while the most bearish prices it at US$12.83. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Equinox Gold's past performance and to peers in the same industry. It's clear from the latest estimates that Equinox Gold's rate of growth is expected to accelerate meaningfully, with the forecast 94% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 17% 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 13% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Equinox Gold to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Equinox Gold.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Equinox Gold going out to 2028, and you can see them free on our platform here..
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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.